EXCHANGE RULE: 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.
Pursuant to an offer of settlement that Yingdi Liu (“Liu”) presented at a hearing on July 20, 2016, in which Liu 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 Liu is subject to the jurisdiction of the Exchange pursuant to Rules 402 and 418.
The Panel also found that on several dates in April 2015, Liu engaged in a pattern of activity in which he entered layered manual orders in Crude Oil and Natural Gas contracts without the intent to trade. Specifically, Liu entered these layered orders to encourage market participants to trade opposite his smaller orders that were resting on the opposite side of the book. After receiving a fill on his resting smaller orders, Liu would then cancel the layered orders he had entered on the opposite side of the order book.
The Panel found that as a result of the foregoing, Liu violated NYMEX Rule 575.A.
In accordance with the settlement offer, the Panel ordered Liu to pay a fine to the Exchange in the amount of $15,000 and suspended Liu’s access to any CME Group trading floor, and direct or indirect access to any CME Group electronic trading or clearing platform for 20 business days, beginning on the effective date above. The suspension will run from July 22, 2016 through August 18, 2016.
See companion case COMEX 15-0143-BC