NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

Glory Sky Precious Metals Limited

EXCHANGE RULES:

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 Glory Sky Precious Metals Limited (“Glory Sky Precious Metals”) presented at a hearing on May 24, 2017, in which Glory Sky Precious Metals neither admitted nor denied the findings or the rule violations upon which the penalty is based, a Panel of the COMEX Business Conduct Committee (“Panel”) found that between May 1, 2015 and May 1, 2016, Glory Sky Precious Metals entered and fully cancelled 7,156 orders in the Gold futures markets primarily for the purposes of testing the latency within those same markets and not for the purposes of executing trades.

The Panel also found that Glory Sky Precious Metals permitted several individuals to enter and cancel the above-referenced orders through a single TAG50 User ID.

The Panel found that as a result of the foregoing, Glory Sky Precious Metals violated Exchange Rules 575.A. and 576.

PENALTY:

In accordance with the settlement offer, the Panel ordered Glory Sky Precious Metals to pay a fine to the Exchange in the amount of $55,000.