• NOTICE OF DISCIPLINARY ACTION

      • #
      • CME-16-0420-BC
      • Effective Date
      • 27 October 2017
    • FILE NO.:

      CME 16-0420-BC

      NON-MEMBER:

      Yongjoon Lee

      CME RULE VIOLATION:

      Rule 575.A. (DISRUPTIVE PRACTICES PROHIBITED)

      All orders must be entered for the purpose of executing bona fide transactions. Additionally, all non-actionable messages must be entered in good faith for legitimate purposes.

      A. No person shall enter or cause to be entered an order with an 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 in which Yongjoon Lee (“Lee”) neither admitted nor denied the rule violation upon which the penalty is based, on October 25, 2017, a Panel of the Chicago Mercantile Exchange Business Conduct Committee (“Panel”) found that on multiple dates between August 2015 and April 2016, Lee entered and cancelled orders in the September 2015, December 2015, and June 2016 E-Mini futures contract without the intent to trade the orders. Specifically, Lee placed large orders on one side of the market while having smaller orders on the opposite side of the market. Once the smaller orders began to trade, Lee cancelled the large orders. The Panel thereby concluded that Lee violated CME Rule 575.A.

      PENALTY:

      In accordance with the settlement offer, the Panel ordered Lee to pay a $35,000 fine and to serve a 30-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 October 27, 2017 through December 11, 2017, inclusive.

      EFFECTIVE DATE:

      October 27, 2017