PIMCO Fires Seksaria Following CME Fines for Improper Trading

Pacific Investment Management Co's (PIMCO's) Rahul Seksaria was fired from the firm after the CME Group fined him for improper trades which resulted in client funds being transferred into his personal account.

According to the CME Group website, the following was posted on December 19th:

FINDINGS:

On July 9, 2014, a Panel of the Chicago Mercantile Exchange (“CME”) Probable Cause Committee (“PCC”) charged Rahul Seksaria (“Seksaria”) with violating CME Rules 432.G., 432.Q. and 539.A., based on allegations that on April 5, 2012, Seksaria orchestrated and prearranged trades in the June 2015 Eurodollar futures contract opposite one of his employer’s client suspense account, which resulted in the transfer of $2,675 from the suspense account to his personal trading account.

On November 13, 2014, a Hearing Panel Chair of the CME Business Conduct Committee (“BCC”) entered an order finding that Seksaria failed to answer the charges issued against him. In failing to answer the charges, the Hearing Panel Chair further ordered that Seksaria was deemed to have admitted the charges issued, and that Seksaria had waived his right to a hearing on the merits of the charges.

At a hearing on December 17, 2014, Seksaria voluntarily submitted to the jurisdiction of the BCC for purposes of settling the matter and submitted an offer of settlement. The Panel of the BCC (“Panel”) found that Seksaria committed the violations alleged in the notice of charges.

PENALTY:

In accordance with the settlement offer, and the Panel’s findings and conclusions, the Panel ordered Seksaria to pay a fine of $65,000, $2,675 in restitution, and barred Seksaria from accessing any CME Group Inc. trading floor, and direct and indirect access to all electronic trading and clearing platforms owned or controlled by CME Group Inc. for three months, beginning on the effective date below and continuing through and including March 19, 2015.

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