RULE 432. General Offenses (in part)
It shall be an offense:
G. To prearrange the execution of transactions in Exchange products for the
purpose of transferring equity between accounts;
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;
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.
Pursuant to an offer of settlement that Yongwu Shao (“Yongwu”) presented at a hearing on September 30, 2015, in which Yongwu neither admitted nor denied the factual allegations or rule violations upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that Yongwu consented to the jurisdiction of the Exchange for the time period of November 2009 through November 2010 and that, for the time period of March 2013, it had jurisdiction over Yongwu, pursuant to Exchange Rules 402 and 418. The Panel further found that on multiple trade dates during the time period of November 2009 to November 2010 and during March 2013, Yongwu pre-arranged and executed multiple round turn transactions, which resulted in the transfer of $23,900 from an account owned by Yongwu to a second account. Additionally, during this time period, Yongwu permitted another individual to enter orders using his own Tag50.
The Panel concluded that Yongwu violated Exchange Rules 432.G., 432.Q., and 576.
In accordance with the settlement offer, the Panel ordered Yongwu to (1) pay a fine to the Exchange in the amount of $20,000; and (2) serve a 10 business day suspension from (a) applying for membership at any CME Group exchange; (b) direct or indirect access to all electronic trading and clearing platforms owned or controlled by the CME Group Inc., including CME Globex; and (c) access to any trading floor owned or controlled by any CME Group, Inc. exchange. The suspension shall run from October 2, 2015 through and including October 15, 2015.
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