Ching Y. Kung
CBOT RULE VIOLATION:
534. WASH TRADES PROHIBITED
No person shall place or accept buy and sell orders in the same product and expiration month, and, for a put or call option, the same strike price, where the person knows or reasonably should know that the purpose of the orders is to avoid taking a bona fide market position exposed to market risk (transactions commonly known or referred to as wash sales). Buy and sell orders for different accounts with common beneficial ownership that are entered with the intent or negate market risk or price competition shall also be deemed to violate the prohibition on wash trades. Additionally, no person shall knowingly execute or accommodate the execution of such orders by direct or indirect means.
539. PREARRANGED, PRE-NEGOTIATED AND NON-COMPETITIVE TRADES PROHIBITED
A. No person shall prearrange or pre-negotiate any purchase or sale or non-competitively execute any transaction.
Pursuant to an offer of settlement in which Ching Y. Kung neither admitted nor denied the facts, on December 7, 2010, a panel of the CME Business Conduct Committee found that Ching Kung voluntarily submitted himself to the jurisdiction of the CME Business Conduct Committee and that between September 30, 2008 and March 20, 2009, he engaged in a series of prohibited trades in the E-Mini S&P 400 Futures contracts, which were designed to move money from one account to two other accounts. The Panel found that in so doing, Ching Y. Kung violated CME Rules 534 and 539.A.
The Panel fined Ching Y. Kung $15,000 and suspended his direct access to any trading floor or electronic trading or clearing platform owned or operated by CME Group, including CME Globex® for 40 days.
The suspension shall run from December 9, 2010 through January 18, 2011 inclusive.
December 9, 2010
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