Rule 432. General Offenses
It shall be an offense:
B. 1. to engage in fraud or bad faith;
2. to engage in conduct or proceedings inconsistent with the just and equitable principles of trade;
C. to engage in dishonest conduct;
G. to prearrange the execution of transactions in Exchange products for the purpose of transferring equity between accounts.
Pursuant to an offer of settlement that Chih-Lin Huang (“Huang”) presented at a hearing on September 24, 2015, in which Huang neither admitted nor denied the findings or the rule violations upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that Huang was subject to the jurisdiction of the Exchange pursuant to Exchange Rules 402 and 418 and that on three trade dates in March 2014 and April 2014, Huang executed multiple round turn transactions on the CME Globex platform between an account he traded for his employer (“employer account”) and two accounts over which he had trading discretion (“discretionary trading accounts”). The purpose of these round turn transactions was to transfer $45,030 from his employer’s account to the two discretionary trading accounts.
The Panel found that as a result of the foregoing, Huang violated Exchange Rules 432.B.1., 432.B.2., 432.C., and 432.G.
In accordance with the settlement offer, which took into account Huang’s financial condition and the fact that he fully reimbursed his employer, the Panel suspended Huang from any access to any CME Group Inc. trading floor and of direct and indirect access to all electronic trading and clearing platforms owned or controlled by CME Group Inc., including CME Globex for a period of one year. The suspension will run from September 28, 2015 through September 28, 2016 inclusive.
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