Release:#3977-96 (CFTC Docket SD 96-10)
For Release: December 4, 1996
CFTC Settles Statutory Disqualification Action Against CBOT Floor Broker
Timothy J. Murphy; Conditions Murphy's Registration for a Two-Year Period
WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced today that on December 2, 1996, it accepted the offer of settlement of Timothy J. Murphy, a registered floor broker at the Chicago Board of Trade (CBOT), stemming from a CFTC statutory disqualification (SD) proceeding brought against Murphy in September 1996. (See CFTC News Release 3942-96, September 24, 1996.)
The CFTC, in its SD proceeding against Murphy, alleged that he was statutorily disqualified from registration as a result of CBOT disciplinary proceedings in which the CBOT's Floor Governors Committee found that Murphy had mishandled customer orders by allocating trades on behalf of customers to his personal account.
The CFTC order accepting Murphy's offer includes a finding that Murphy is statutorily disqualified from registration, and conditions his registration as a floor broker for two years. Under the terms of the CFTC order, during the two-year period of conditioned registration, Murphy is prohibited from acting as a floor broker unless he obtains a floor broker sponsor who will closely supervise his activities. In addition, Murphy's registration will be subject to an automatic suspension if he is charged with certain disciplinary offenses, as defined in applicable CFTC regulations.
Murphy is also prohibited during the two-year time period from: (1) trading for his personal account or any account in which he has a 10 percent or greater interest; (2) serving on any disciplinary committee, arbitration panel, oversight panel or governing board of any self-regulatory organization subject to regulation by the CFTC; (3) acting as a principal, partner, officer, or branch office manager of any entity registered or required to be registered with the CFTC; (4) acting in any supervisory capacity over anyone required to be registered with the CFTC; and (5) exercising discretionary authority over any customer account.