NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CME 15-0172-BC

NON-MEMBER:

Ji-Hwan Byun

CME RULE VIOLATION:

Rule 575. Disruptive Practices Prohibited (in part):

All orders must be entered for the purpose of executing bona fide transactions. Additionally, all non-actionable messages must be entered in good faith for legitimate purposes.

A. 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:

On May 17, 2017, a Panel of the Chicago Mercantile Exchange (“CME”) Probable Cause Committee (“PCC”) charged non-member Ji-Hwan Byun (“Byun”) with violating CME Rule 575.A. based on allegations that between January 1, 2015 and July 1, 2015, Byun entered large orders in Euro FX and E-Mini NASDAQ futures markets on Globex with the intent, at the time of order entry, to cancel the order before execution or to modify the order to avoid execution.

On June 21, 2018, a Hearing Panel Chair of the CME Business Conduct Committee (“BCC”) entered an order finding that Byun failed to answer the charge issued against him. In failing to answer the charge, the Hearing Panel Chair further ordered that Byun was deemed to have admitted the charge issued and waived his right to a hearing on the merits of the charges.

Pursuant to CME Rule 407.C., a penalty hearing was held before a Panel of the BCC (“Panel”) on July 24, 2018. The Panel found Byun guilty of committing the admitted charge.

PENALTY:

Based on the record and the Panel’s findings and conclusions, the Panel ordered that Byun pay a total fine of $50,000 in connection with this case and companion case CBOT 15-0172-BC ($25,000 of which is allocated to this case). The Panel also suspended Byun from all direct and indirect access to any trading floor or electronic trading or clearing platform owned or operated by CME Group Inc. for a period of five years, beginning on the effective date below and continuing for five years from the date that the ordered fine is paid.

EFFECTIVE DATE:

August 9, 2018