MERC REMOVES GROUP FROM FLOOR; DRUGS SUSPECTED

The Chicago Mercantile Exchange on June 16 removed a group of
people from the trading floor amid suspicions of buying and selling
drugs, traders at the Merc said.

No allegations have been filed with the Chicago Police Department or
the state's attorney's office, but traders and others at the exchange
said the alleged violations were caught on surveillance cameras.

"We don't discuss ongoing investigations, even to confirm their
existence," said Ellen Resnick, a spokeswoman for the Merc. She
declined to comment further.

According to floor sources, about a half dozen people were removed
from the floor; at least two of them were said to be exchange members
and the rest were clerks.

"Everybody knew this was going on for a long time," said one trader,
who credited Chairman Scott Gordon and President and Chief Executive
James McNulty for cracking down on the group.

Another source said the Merc may try to keep them off the exchange
floor by filing disciplinary cases unrelated to the alleged drug trading.

Pat Camden, a spokesman for the Chicago Police Department, said
officers were unaware of the incident. The Federal Bureau of
Investigation and U.S. attorney's office said they had no knowledge of
the matter.

Tribune staff contributed to this report.