• NOTICE OF DISCIPLINARY ACTION

      • #
      • CME 16-0364-BC-1
      • Effective Date
      • 22 December 2017
    • MEMBER:

      VINCENT NGO

      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 a hearing or in connection with any investigation, or to make false statements.

      RULE 575.A. DISRUPTIVE PRACTICES PROHIBITED

      No person shall enter or cause to be entered an order with the intent, at the time of order entry, to cancel the order before execution or to modify the order to avoid execution.

      RULE 576. IDENTIFICATION OF GLOBEX TERMINAL OPERATORS

      Each Globex terminal operator shall be identified to the Exchange, in the manner prescribed by the Exchange, and shall be subject to Exchange rules. If user IDs are required to be registered with the Exchange, it is the duty of the clearing member to ensure that registration is current and accurate at all times. Each individual must use a unique user ID to access Globex. In no event may a person enter an order or permit the entry of an order by an individual using a user ID other than the individual’s own unique user ID.

      FINDINGS:

      Pursuant to an offer of settlement that Vincent Ngo (“Ngo”) presented at a hearing on December 20, 2017, in which Ngo neither admitted nor denied the rule violations upon which the below penalty is based, Ngo agrees to an entry of findings by a Panel of the CME Business Conduct Committee (“Panel”) that, between October 1, 2015 and November 18, 2015, Ngo, using Tag 50 user IDs registered to other employees of the same trading firm, entered orders without the intent to trade in the E-Mini S&P 500 (“E-Mini”) Futures market. Specifically, the Panel found that Ngo typically placed larger-sized orders on one side of the market and then cancelled them after resting orders on the opposite side of the book were executed. The Panel also found that Ngo refused to fully answer all questions posed by Exchange employees during an interview concerning the entry of such orders.

      The Panel concluded that the conduct described above violated Exchange Rules 432.L.2., 575.A., and 576.

      PENALTY:

      In accordance with the settlement offer, the Panel ordered Ngo to pay a monetary fine of $100,000 and serve a three-month suspension from membership privileges on any CME Group Inc. exchange, access to all CME Group Inc. trading floors and direct or indirect access to all electronic trading and clearing platforms owned or operated by CME Group Inc., including Globex. The suspension will run from December 22, 2017 through, and including, March 22, 2018.