• NOTICE OF DISCIPLINARY ACTION

      • #
      • COMEX 12-8979-BC
      • Effective Date
      • 24 July 2017
    • MEMBER:

      Gregg Smith

      EXCHANGE RULES: Rule 432. General Offenses

      It shall be an offense:

      B.2. to engage in conduct or proceedings inconsistent with just and equitable principles of trade;

      Q. to commit an act which is detrimental to the interest or welfare of the Exchange or to engage in any conduct which tends to impair the dignity or good name of the Exchange;

      T. to engage in dishonorable or uncommercial conduct;

      FINDINGS:

      Pursuant to an offer of settlement that Gregg Smith (“Smith”) presented at a hearing on July 20 , 2017, in which Smith neither admitted nor denied the findings or the rule violations upon which the penalty is based, a Panel of the COMEX Business Conduct Committee (“Panel”) found that in July and August 2013, in the August 2013 Gold and December 2013 Gold futures markets, Smith employed a trading strategy that consisted of frequently entering and cancelling a series of orders, at various prices, for the purpose of, including but not limited to, discovering support for or resistance to the order prices he had entered and whether any such support or resistance was a legitimate indicator of other market participants’ interest in executing trades at various prices, rather than to execute trades.

      The Panel found that as a result of the foregoing, Smith violated Exchange Rules 432.B.2., 432.Q., and 432.T.

      PENALTY:

      In accordance with the settlement offer, the Panel ordered Smith to pay a fine to the Exchange in the amount of $95,000 and to serve a 10 business day suspension of any access to any CME Group, Inc. trading floor and of direct and indirect access to all electronic trading and clearing platforms owned or controlled by CME Group, Inc., including CME Globex. The suspension shall run from July 24, 2017, through August 4, 2017, inclusive.