Wheat prices were often under pressure during that year-long period due to large global supplies. Peavy could not be reached for comment. He did not admit or deny wrongdoing as part of a settlement with the CBOT.
The prohibited trades were part of a strategy in which Peavy was "illegally offsetting customer orders opposite a single accommodating local trader for that local's personal account," according to the notice. The second trader, who was not named, made profits for his personal account, it said CBOT rules state all open-outcry transactions must be made "openly and competitively" and that "no bid or offer shall be specified for acceptance by a particular trader."
The unnamed trader also engaged in prohibited transactions by non-competitively buying and selling identical quantities of the same wheat futures contract opposite Peavy, who was trading for his personal account, according to the notice. The transactions were often completed at a one-cent price differential, allowing the unnamed trader to be "passing money to Peavy in the form of trading profits," the notice said.