• NOTICE OF DISCIPLINARY ACTION

      • #
      • NYMEX 17-0692-BC
      • Effective Date
      • 07 May 2018
    • NON-MEMBER:

      Ruowen Chen

      NYMEX RULE VIOLATION: RULE 562. POSITION LIMIT VIOLATIONS

      Any positions in excess of those permitted under the rules of the Exchange shall be deemed position limit violations.

      FINDINGS:

      On December 19, 2017, a Panel of the New York Mercantile Exchange (“NYMEX”) Probable Cause Committee (“PCC”) charged non-member, Ruowen Chen (“Chen”) with violating NYMEX Rule 562, based on allegations that at the close of business on April 17, 2017, Chen held a long position of 3,189 May 2017 Crude Oil (“MAY17 CL”) Futures contracts, 189 contracts (6.3%) above the standard expiration month position limit in the MAY17 CL contract, in effect at the close of business that same day, April 17, 2017, and that Chen subsequently liquidated her overage position, resulting in profits of $17,030.

      On March 27, 2018, a Hearing Panel Chair of the NYMEX Business Conduct Committee (“BCC”) entered an order finding that Chen failed to answer the charge issued against it. In failing to answer the charge, the Hearing Panel Chair further ordered that Chen was deemed to have admitted the charge issued and waived her right to a hearing on the merits of the charge.

      Pursuant to NYMEX Rule 407.C., a penalty hearing was held before a Panel of the BCC (“Panel”) on April 18, 2018. The Panel found that Chen had committed the admitted charge.

      PENALTY:

      In accordance with NYMEX Rule 402.B., the Panel ordered that Chen pay a $20,000 fine, disgorge profits in the amount of $17,030, and serve a suspension for a period of six-months from (i) applying for Membership at any CME Group exchange; (ii) all direct and indirect access to any trading or clearing platform owned or operated by CME Group, Inc.; and (iii) access to any trading floor owned or operated by any CME Group, Inc. exchange. The suspension shall run from May 7, 2018 through November 7, 2018.