• NOTICE OF DISCIPLINARY ACTION

      • #
      • COMEX 15-0351-BC-1
      • Effective Date
      • 17 October 2018
    • NON-MEMBER:

      SUNG YONG KIM

      RULE VIOLATIONS:

      NYMEX 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:

      On June 5, 2018, a Panel of the Commodity Exchange (“COMEX”) Probable Cause Committee charged Sung Yong Kim (“Kim”) with violating NYMEX Rule 575.A. based on allegations that between November 24, 2015 and January 5, 2016, Kim engaged in disruptive trading activity in the Gold Futures market by entering orders without the intent to trade. Specifically, Kim typically entered a larger order on one side of the market and then cancelled them after resting smaller orders on the opposite side of the book were executed.

      On August 8, 2018, a Hearing Panel Chair of the COMEX Business Conduct Committee (“BCC”) entered an order finding that Kim failed to answer the charge against him. The Hearing Panel Chair further ordered that Kim was deemed to have admitted the charges issued and waived his right to a hearing on the merits of the charges.

      On September 27, 2018, a penalty hearing was held before a panel of the COMEX BCC (“BCC Panel”) which found that Kim had committed the violations charged.

      PENALTY:

      In accordance with NYMEX Rule 402.B (Sanctions), the BCC Panel ordered Kim to pay a total monetary fine in the amount of $70,000, e.g., $60,000 of the monetary fine is allocated to COMEX 15-0351-BC and $10,000 is allocated to NYMEX 15-0351-BC, and to serve a permanent ban from membership privileges, access to any CME Group, Inc. trading floor, and direct and indirect access to all electronic trading and clearing platforms owned or controlled by CME Group, Inc.