CBOT Announces Disciplinary Action

The Chicago Board of Trade (CBOT) on May 24 announced disciplinary action taken on behalf of the CBOT membership by the Business Conduct Committee. As noted on the following page, this action reflects the exchange's commitment to maintaining a fair and orderly marketplace of the highest integrity. The CBOT releases all disciplinary actions involving fines in excess of $25,000 and/or suspensions greater than five days. On May 3, 1999, the BUSINESS CONDUCT COMMITTEE ("Committee") of the Board of Trade of the City of Chicago voted to accept an offer of settlement from Refco, Inc. ("REFCO"), a Member Firm. Without admitting or denying any violation, REFCO agreed to pay a fine of $1,000,000.00 with respect to the below listed Rule and Regulations. The Committee's Decision accepting the offer of settlement became effective on May 24, 1999. Therefore, the Committee has reason to believe that REFCO violated the following Rule and Regulations of the Chicago Board of Trade: Regulation 465.01, in that REFCO failed to record account designations on customer orders upon their receipt; Regulation 480.10, in that REFCO failed to ensure compliance with Exchange Rules and Regulations by its employees or agents; Regulation 545.02, in that REFCO failed to maintain complete and accurate books and records; and Rule 504.00, in that, by virtue of the above-referenced violations, REFCO engaged in acts which are detrimental to the interest or welfareof the Association. Paul J. Draths, Vice President and Secretary.