• NOTICE OF DISCIPLINARY ACTION

      • #
      • NYMEX 15-0087-BC-7
      • Effective Date
      • 05 January 2017
    • NON-MEMBER:

      HONG KONG WEIYE INDUSTRY LTD.

      EXCHANGE RULES: RULE 432. General Offenses (in part)

      It shall be an offense:

      L. 2. To fail to fully answer all questions and produce all books and records at
      such hearing or in connection with any investigation, or to make false
      statements;

      FINDINGS:

      On August 9, 2016, a Panel of the New York Mercantile Exchange (“NYMEX”) Probable Cause Committee charged non-member Hong Kong Weiye Industry Ltd. (“Hong Kong Weiye”) with violating NYMEX Rule 432.L.2. based on allegations that Hong Kong Weiye failed to respond to requests from Exchange staff for information or documentation in connection with an investigation.

      On November 23, 2016, a Hearing Panel Chair of the NYMEX Business Conduct Committee (“BCC”) entered an order finding that Hong Kong Weiye failed to answer the charge against it. The Hearing Panel Chair further ordered that Hong Kong Weiye was deemed to have admitted the charges issued and waived its right to a hearing on the merits of the charges.

      On December 19, 2016, a penalty hearing was held before a panel of the NYMEX BCC (“BCC Panel”) which found that Hong Kong Weiye had committed the violation charged.

      PENALTY:

      In accordance with NYMEX Rule 402.B (Sanctions), the BCC Panel ordered Hong Kong Weiye to 1) pay a fine in the amount of $50,000 and (2) be suspended for a period of ten years from (a) applying for Membership at any CME Group exchange; (b) direct or indirect access to any trading or clearing platform owned or controlled by the CME Group, Inc.; and (c) access to any trading floor owned or operated by any CME Group, Inc. exchange.