• NOTICE OF DISCIPLINARY ACTION

      • #
      • COMEX 17-0646-BC-1
      • Effective Date
      • 14 June 2018
    • NON-MEMBER:

      FUJI FUTURES CO., LTD.

      EXCHANGE RULES: 432.W. GENERAL OFFENSES (in part)

      (W) It shall be an offense for any party to fail to diligently supervise its
      employees and agents in the conduct of their business relating to the Exchange.

      FINDINGS:

      Pursuant to an offer of settlement that Fuji Futures Co., Ltd. (“Fuji Futures”) presented at a hearing on June 12, 2018, in which Fuji Futures neither admitted nor denied the rule violations upon which the penalty is based, a Panel of the Commodity Exchange (“COMEX”) Business Conduct Committee (“BCC Panel”) found that, on numerous trade dates between April 2016 and March 2017, a trader employed by Fuji Futures (the “trader”) entered orders in various Gold and Copper Futures contracts on the Globex electronic trading platform during the pre-opening period for the purpose of identifying the depth of the order book. The entry and cancellation of these orders by the trader caused fluctuations in the publicly displayed Indicative Opening Price. The BCC Panel also found that, during this time period, Fuji Futures failed to provide instruction or guidance to its traders on Exchange rules and regulations, specifically with regard to disruptive trading, as well as failed to supervise the trading activities of its traders to ensure compliance with Exchange rules.

      The BCC Panel concluded that Fuji Futures violated Exchange Rule 432.W.

      PENALTY:

      In accordance with the settlement offer, the BCC Panel ordered Fuji Futures to pay a total monetary fine in the amount of $45,000 in connection with this case and companion case NYMEX 17-0646-BC ($10,000 of the monetary fine is allocated to COMEX).