NOTICE OF DISCIPLINARY ACTION

FILE NO.:                   21-CH-2114

MEMBER FIRM:         Nanhua USA LLC     

CME Rules:                Rule 970.        FINANCIAL REQUIREMENTS

A.    Subject to exemptions granted by Exchange staff, all clearing members, including non-FCMs, must comply with the requirements set forth in CFTC Regulations 1.10, 1.12, 1.17 and 1.18. This includes, but is not limited to, the following:                                 

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Rule 971.        SEGREGATION, SECURED AND CLEARED SWAPS CUSTOMER ACCOUNT REQUIREMENTS

A.    All clearing members must comply with the requirements set forth in CFTC Regulations 1.20 through 1.30, 1.32, 1.49 and 30.7, and Part 22 of the CFTC  Regulations. This includes, but is not limited to, the following:

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FINDINGS:                 Pursuant to an offer of settlement in which Nanhua USA LLC neither admitted nor denied the rule violations upon which the penalty is based, on November 15, 2021, the Clearing House Risk Committee found that Nanhua USA LLC violated CME Rules 970.A. and 971.A.

PENALTY:                  In accordance with the settlement offer, the Committee imposed a $50,000 fine.

EFFECTIVE DATE:    November 16, 2021