NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

NASIM SALIM

EXCHANGE RULES:

Rule 432.I. General Offenses (in part)

It shall be an offense to make a verbal or written material misstatement to the Board, a committee, or Exchange Employees.

Rule 575.A. Disruptive Practices Prohibited

No person shall enter or cause to be entered an order with the intent, at the time of order entry, to cancel the order before execution or to modify the order to avoid execution.

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.

FINDINGS:

Pursuant to an offer of settlement that Nasim Salim (“Salim”) presented at a hearing on April 26, 2016, in which Salim neither admitted nor denied the rule violations upon which the penalty is based, a Panel of the COMEX Business Conduct Committee (“Panel”) found it had jurisdiction over Salim pursuant to Exchange Rules 402 and 418 and that on multiple trade dates during the time period of March 2015 and April 2015, Salim engaged in disruptive trading activity, individually, as well as in coordinated fashion with Trader “A”, by entering orders in Gold and Silver futures contracts without the intent to trade. Specifically, Salim layered orders on one side of the market and then cancelled them a few seconds after resting orders on the opposite side of the book were executed. Additionally, Salim made verbal material misstatements to Exchange employees concerning the entries of such orders, as well as permitted another individual to enter such orders using his own Tag50.

The Panel concluded that Salim violated Exchange Rules 432.I., 575.A., and 576.

PENALTY:

In accordance with the settlement offer, the Panel ordered Salim to (1) pay a fine to the Exchange in the amount of $100,000 and (2) to be permanently banned from (a) applying for Membership at any CME Group exchange; (b) direct or indirect access to any trading or clearing platform owned or controlled by CME Group Inc., including CME Globex; and (c) access to any trading floor owned or operated by any CME Group, Inc. exchange.