NOTICE OF DISCIPLINARY ACTION

MEMBER:

COREY FLAUM

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.

FINDINGS:

Pursuant to an offer of settlement that Corey Flaum (“Flaum”) presented at a hearing on March 28, 2018, in which Flaum neither admitted nor denied the rule violations upon which the below penalty is based, Flaum agrees to an entry of findings by a Panel of the COMEX Business Conduct Committee (“BCC Panel”) that, between January 2016 and July 2016, Flaum entered certain orders in the Gold and Silver Futures contract markets without intending for such orders to trade. Specifically, the BCC Panel found that Flaum typically entered larger orders on one side of the market and then cancelled them after resting smaller orders on the opposite side of the book were executed.

The Panel concluded that Flaum violated Exchange Rule 575.A.

PENALTY:

In accordance with the settlement offer, the Panel ordered Flaum to pay a monetary fine of $35,000 and to serve a 10-business day suspension from membership privileges on any CME Group Inc. exchange and direct or indirect access to all electronic trading and clearing platform owned or operated by CME Group Inc., including CME Globex. The suspension shall run from April 2, 2018 through, and including April 13, 2018.