NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

Shung-Han Liu

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 Shung-Han Liu (“Liu”) presented at a hearing on April 18, 2018, 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 from October 7, 2016 through December 16, 2016, Liu engaged in a pattern of activity in which he manually entered orders in several NYMEX Crude Oil Futures contract markets without the intent to trade. Specifically, Liu entered these orders to encourage market participants to trade opposite his smaller orders, orders he had entered using another individual’s unique TAG50 User ID, that were resting on the opposite side of the book. After receiving a fill on his resting smaller orders, Liu would immediately cancel the larger 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. and NYMEX Rule 576.

PENALTY:

In accordance with the settlement offer, the Panel ordered Liu to pay a fine to the Exchange in the amount of $40,000 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 10 business days, beginning on the effective date below. The suspension will run from April 20, 2018 through May 3, 2018.