NOTICE OF DISCIPLINARY NOTICE

NON-MEMBER:

Li Jia Ning

CBOT RULE VIOLATION:

Rule 534. Wash Trades Prohibited

No person shall place or accept buy and sell orders in the same product and expiration month, and, for a put or call option, the same strike price, where the person knows or reasonably should know that the purpose of the orders is to avoid taking a bona fide market position exposed to market risk (transactions commonly known or referred to as wash sales). Buy and sell orders for different accounts with common beneficial ownership that are entered with the intent to negate market risk or price competition shall also be deemed to violate the prohibition on wash trades. Additionally, no person shall knowingly execute or accommodate the execution of such orders by direct or indirect means.

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 in which Li Jia Ning (“Ning”) neither admitted nor denied the rule violation upon which the penalty is based, on May 10, 2017, a Panel of the Chicago Board of Trade Business Conduct Committee (“Panel”) found that between January 2015 and May 2015, Ning entered equal and opposing orders on behalf of a single account owned by his employer that resulted in the self-match of 21,434 Soybean futures contracts. The Panel further found that the employer’s account appeared as both the buying and selling account for each transaction and that Ning knew or reasonably should have known that the buy and sell orders would trade opposite each other. In addition, Ning utilized another individual’s TAG 50 Identification to enter orders onto Globex. The Panel thus concluded that Ning thereby violated CBOT Rules 534 and 576.

PENALTY:

In accordance with the settlement offer and after taking Ning’s financial condition into consideration when levying the sanction, the Panel ordered Ning to serve a six-month suspension from accessing any CME Group Inc. trading floor and direct and indirect access to all electronic trading and clearing platforms owned or controlled by CME Group Inc., including CME Globex. The suspension shall run from May 12, 2017, through November 12, 2017, inclusive.

EFFECTIVE DATE:

May 12, 2017