• NOTICE OF DISCIPLINARY ACTION

      • #
      • NYMEX 14-0059-BC
      • Effective Date
      • 09 June 2016
    • NON-MEMBER:

      William Chan

      EXCHANGE RULE: Rule 575.A. Disruptive Practices Prohibited

      No person shall enter or cause to be entered an order with the intent, at the time of order entry, to cancel the order before execution or to modify the order to avoid execution.

      FINDINGS:

      Pursuant to an offer of settlement that William Chan (“Chan”) presented at a hearing on June 7, 2016, in which Chan neither admitted nor denied the findings or the rule violations upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that Chan is subject to the jurisdiction of the Exchange pursuant to Rules 402 and 418.

      The Panel also found that on several trade dates in between September 15, 2014 and January 23, 2015, Chan engaged in a pattern of activity in which he entered large manual orders in Platinum and Palladium contracts without the intent to trade. Specifically, Chan entered these large orders to encourage market participants to trade opposite his smaller orders that were resting on the opposite side of the book. After receiving a fill on his resting smaller orders, Chan would then cancel the large orders he had entered on the opposite side of the order book.

      The Panel found that as a result of the foregoing, Chan violated NYMEX Rule 575.A.

      PENALTY:

      In accordance with the settlement offer, the Panel ordered Chan to pay a fine to the Exchange in the amount of $25,000 and suspended Chan’s access to any CME Group trading floor, and direct or indirect access to any CME Group electronic trading or clearing platform for 15 business days, beginning on the effective date below. The suspension will run from June 9, 2016 through June 29, 2016.

      Please see companion case William Chan, COMEX 14-0059-BC.