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Tuesday, July 22, 2025

Founder of Belvedere Trading on CBOE misconduct: 'Failure to intervene demanding money with menaces'

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Yezdaan Baber (right), Current CEO of Belvedere Trading | X

Yezdaan Baber (right), Current CEO of Belvedere Trading | X

William Carlson, founder of Belvedere Trading LLC, has raised concerns over criminal acts and coercive demands associated with the firm that he claims have been overlooked by regulatory and federal entities. These remarks were made in a memo addressed to the Chicago Board Options Exchange (CBOE) board.

"This is important information regarding a public company," said Carlson. "Criminal fraud theft and criminal conduct. Demands for up to $9 million from a founder's capital account were made under duress. Failure to intervene demanding money with menaces coercion kickbacks extortion sabotage."

Belvedere Trading LLC has recently come under scrutiny due to CBOE's disciplinary processes and related regulatory frameworks. This follows failures to supervise and adhere to close-out obligations. The firm's consent order in September 2024 highlights a broader trend of intensified regulatory oversight of exchange members after notable enforcement failures in recent years. According to CBOE’s disciplinary release, Belvedere’s sanctions reflect this shift toward rigorous enforcement by exchanges and regulators.

In June 2025, U.S. Department of Justice attorney Andrew Boutros publicly reaffirmed the DOJ’s commitment to holding legal professionals accountable for breaches of fiduciary duty amid broader scrutiny of financial misconduct in private firms. This statement came during a period when Belvedere Trading faced significant legal disputes involving allegations of unauthorized fund transfers, obstructed audits, and governance failures. Carlson has accused former U.S. Attorney Patrick M. Collins of concealing forensic evidence and prolonging litigation over firm ownership. A 2010 forensic report referenced by the Securities and Exchange Commission (SEC) cited inadequate financial controls and undocumented proprietary trades at the firm.

In October 2019, reports from the U.S. Commodity Futures Trading Commission (CFTC) indicated that Belvedere Trading LLC was ordered to pay a $1.1 million civil monetary penalty for engaging in spoofing activities in the E-mini S&P 500 futures market. The CFTC found that two traders from Belvedere placed hundreds of orders they intended to cancel before execution, creating a false impression of market demand.

Carlson founded Belvedere Trading LLC in 2002 as a proprietary trading firm through Chicago Board Options Exchange channels, focusing on equity index options trading. He sold his interest in Belvedere to his partners in 2008 but has remained involved in legal disputes related to the firm's operations.

Belvedere Trading, established in March 2002, is a Chicago-based proprietary trading firm specializing in equity index and commodity derivatives. The firm established its presence in the SPX pit on the floor of the Chicago Board Options Exchange and has since invested in proprietary technology and risk management capabilities. It leverages its technology to capitalize on inefficiencies in the marketplace, positioning itself among Chicago's elite proprietary trading firms.

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