Release: #3942-96 (Docket SD 96-10)
For Release: September 24, 1996
CFTC Files Statutory Disqualification Action Against Timothy J. Murphy,
a Registered Floor Broker on the Chicago Board of Trade
WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced today that it has filed a Notice of Intent to Suspend, Restrict or Revoke Registration against Timothy J. Murphy of Stickney, Illinois, a registered floor broker trading on the Chicago Board of Trade (CBOT).
The CFTC's Notice alleges that since April, 1982, Murphy has been a member of the CBOT, and that pursuant to an investigation by the CBOT Office of Investigation and Audits into trading by Murphy on January 16, 1991, in which Murphy allegedly allocated a customer's Treasury Bond Futures trade to his own account, a complaint against Murphy was issued by the Floor Governors Committee on August 14, 1992.
The Notice further alleges that on August 21, 1992, the Floor Governors Committee accepted an offer of settlement from Murphy, and that, as part of the settlement, the Floor Governors Committee found that Murphy had:
(1) violated CBOT regulations 350.04 and 350.04A, in that, by allocating trades that he had executed on behalf of customers to his personal account, he had mishandled orders while acting as an agent for the customers; and
(2) violated CBOT regulation 500.00, in that, by his violation of regulations 350.04 and 350.04A, as well as his overall conduct, he engaged in conduct inconsistent with just and equitable principles of trade.
Finally, the CFTC's Notice alleges that, as a result of the CBOT's disciplinary action, Murphy is statutorily disqualified from registration with the Commission pursuant to Section 8a(3)(M) of the Commodity Exchange Act.
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