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.
L. 1. To fail to appear before the Board, Exchange staff or any investigative or
hearing committee at a duly convened hearing, scheduled staff interview or in
connection with any investigation;
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 Hua Dong (“Hua”) presented at a hearing on September 30, 2015, in which Hua 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 Hua 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 Hua, 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, Hua pre-arranged and executed numerous round turn transactions, which resulted in the transfer of $11,800 from an account owned by Hua to a second account, as well as permitted another individual to enter orders using her own Tag50. Hua also failed to appear before Exchange staff for a scheduled interview.
The Panel concluded that Hua violated Exchange Rules 432.G., 432.L.1., 432.Q., and 576.
In accordance with the settlement offer, the Panel ordered Hua to (1) pay a fine to the Exchange in the amount of $10,000; and (2) serve a 6 month 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 April 2, 2016.
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