CME RULE VIOLATIONS:
CME Rule 432.G. General Offenses (in part)
It shall be an offense to prearrange the execution of transactions in Exchange products for the purpose of transferring equity between accounts.
On February 4, 2016, a Panel of the Chicago Mercantile Exchange (“CME”) Probable Cause Committee (“PCC”) charged non-member Jun Jin (“Jin”) with violating CME Rule 432.G. based on allegations that between May 2014 and July 2014, Jin prearranged the execution of transactions in CME FX option instruments for the purpose of transferring equity between accounts.
On August 8, 2016, a Hearing Panel Chair of the CME Business Conduct Committee (“BCC”) entered an order finding that Jin failed to answer the charges issued against him. In failing to answer the charges, the Hearing Panel Chair further ordered that Jin was deemed to have admitted the charges issued and waived his right to a hearing on the merits of the charges.
Pursuant to CME Rule 407.C., a penalty hearing was held before a Panel of the BCC (“Panel”) on October 4, 2016. The Panel found Jin guilty of committing the admitted charge.
Based on the record and the Panel’s findings and conclusions, the Panel ordered Jin to pay a fine in the amount of $50,000, and barred him permanently from (1) membership and privileges at any CME Group Exchange, (2) direct or indirect access and use of any CME Group trading floor, electronic trading platform or clearing platform owned or operated by any CME Group Exchange, and (3) affiliation with, employment by or association with a Member (as this term is defined in Rule 400) or affiliate of a Member of any CME Group Exchange.
November 8, 2016
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