NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

YUCHUN BRUCE MAO

EXCHANGE RULES:

RULE 432. GENERAL OFFENSES (IN PART)

It shall be an offense:

B.2. to engage in conduct or proceedings inconsistent with just and equitable principles of trade;

Q. to commit an act which is detrimental to the interest or welfare of the Exchange or to engage in any conduct which tends to impair the dignity or good name of the Exchange;

T. to engage in dishonorable or uncommercial conduct.

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 Yuchun Bruce Mao (“Mao”) presented at a hearing on August 8, 2018, in which Mao neither admitted nor denied the rule violations upon which the below penalty is based, a Panel of the CME Business Conduct Committee (“Panel”) found that, between November 2013 and December 2013, Mao, while employed as a proprietary trader, engaged in disruptive trading activity in E-mini S&P 500 and E-mini NASDAQ Futures markets by entering orders without the intent to trade. The Panel also found that, subsequently, while employed as a proprietary trader at a different firm Mao engaged in disruptive trading activity between September 2014 and February 2015 in E-mini S&P 500 Futures market by entering orders without the intent to trade. Specifically, the Panel found that, while a trader at both firms Mao typically layered orders on one side of the market and then cancelled them after resting orders on the opposite side of the book were executed.

The Panel concluded that Mao violated Exchange Rules 432.B.2., 432.Q., 432.T., and 575.A.

PENALTY:

In accordance with the settlement offer and, in connection with this case and companion cases CBOT/NYMEX/COMEX 13-9693, the Panel ordered Mao to (1) pay a total monetary fine in the amount of $125,000 ($75,000 of the total monetary fine is allocated to CME) and (2) to serve a 2 year suspension of direct or indirect access to any trading or clearing platform owned or controlled by CME Group Inc., including CME Globex. The suspension shall run from August 10, 2018 through, and including, August 10, 2020.