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.

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, Mao agrees to an entry of findings by a Panel of the COMEX Business Conduct Committee (“Panel”) that, between November 2013 and December 2013, Mao, while employed as a proprietary trader, engaged in disruptive trading activity in the Gold and Copper Futures market by entering orders without the intent to trade. Specifically, the Panel found that 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., and 432.T.

PENALTY:

In accordance with the settlement offer and, in connection with this case and companion cases CME/CBOT/NYMEX 13-9693, the Panel ordered Mao to (1) pay a total monetary fine in the amount of $125,000 ($20,000 of the total monetary fine is allocated to COMEX) 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.