Eight Disciplined At Chicago Merc
CHICAGO (AP) _ The Chicago Mercantile Exchange says it is using its computerized trading system to crack down on broker groups that team up to pool their business.
Eight people have been disciplined for violating rules that restrict trading between members of the same broker group, the Merc announced Tuesday.
The actions, which range from warnings to fines, included a formal warning letter sent to Harry Lowrance, a prominent trader and former Merc floor chairman, said Merc spokesman Andrew Yemma.
Lowrance exceeded the exchange’s 25 percent limit on intra-association trading when filling customer orders during January in Standard and Poor’s 500 futures, Yemma said.
Independent traders complain that their business suffers when groups control large amounts of customer business.