EXCHANGE RULES: Rule 432. General Offenses
It shall be an offense:
G. to prearrange the execution of transactions in Exchange products for the purpose of transferring equity between accounts.
Pursuant to an offer of settlement that Guosheng Li (“Li”) presented at a hearing on March 29, 2017, in which Li neither admitted nor denied the findings or the rule violation upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that on two dates in May 2015, Li executed multiple round turn transactions on the CME Globex platform between an account he traded for his employer (“employer account”) and a personal account over which he had trading discretion. As a result of these round turn transactions, Li’s personal account profited in the amount of $8,350 and his employer’s account sustained a $10,737.50 loss.
The Panel found that as a result of the foregoing, Li violated Exchange Rule 432.G.
In accordance with the settlement offer, which took into account the fact that Li fully reimbursed his employer, the Panel ordered Li to pay a $25,000 fine and serve a one year suspension from any access to any CME Group Inc. trading floor and from direct and indirect access to all electronic trading and clearing platforms owned or controlled by CME Group Inc., including CME Globex. The suspension will run from March 31, 2017 through March 30, 2018 inclusive.
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