CBOT RULE VIOLATIONS:
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 in which Yangyang Zhai (“Zhai”) neither admitted nor denied the rule violations upon which the penalty is based, on August 9, 2017, a Panel of the CBOT Business Conduct Committee (“Panel”) found that on numerous occasions between August 1, 2015, and August 14, 2015, Zhai engaged in a pattern of activity in which she entered large manual orders in the November 2015 Soybean futures market without the intent to trade. Specifically, she entered these large orders to encourage market participants to trade opposite her smaller orders that were resting on the opposite side of the book. After receiving fills on her smaller orders, Zhai would then cancel the resting large orders she had entered on the opposite side of the order book.
The Panel found that as a result of the foregoing, Zhai violated CBOT Rule 575.A.
In accordance with the settlement offer, the Panel ordered Zhai to pay $9,275.00 in disgorgement, to pay a fine of $10,000 and barred Zhai 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., beginning on the effective date below and continuing 45 days from the date that the ordered monetary sanction is paid.
August 11, 2017