• NOTICE OF DISCIPLINARY ACTION

      • #
      • COMEX 16-0509-BC
      • Effective Date
      • 30 October 2018
    • NON-MEMBER:

      WEI FAN

      EXCHANGE RULES:

      RULE 575 D. DISRUPTIVE PRACTICES PROHIBITED

      D. No person shall enter or cause to be entered an actionable or non-actionable message with intent to disrupt, or with reckless disregard for the adverse impact on, the orderly conduct of trading or the fair execution of transactions.

      RULE 432.L. GENERAL OFFENSES (IN PART)

      It shall be an offense:

      L.1. to fail to appear before the Board, Exchange staff or any investigative or hearing committee at a duly convened hearing, scheduled staff interview or in connection with any investigation.

      FINDINGS:

      On June 6, 2018, a Panel of the Commodity Exchange (“COMEX”) Probable Cause Committee charged Wei Fan (“Fan”) with violating NYMEX Rules 575.D. and 432.L.1., based on allegations that Fan entered multiple orders with reckless disregard for the adverse impact on the orderly conduct of trading or the fair execution of transactions, thereby imposing risk to his employer’s firm on multiple occasions on trade date June 24, 2016 and failed to appear before Exchange stuff for a scheduled staff interview.

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

      On October 10, 2018, a penalty hearing was held before a panel of the COMEX BCC (“BCC Panel”) which found that Fan had committed the violations charged.

      PENALTY:

      In accordance with NYMEX Rule 402.B (Sanctions), the BCC Panel ordered Fan to (1) pay a $50,000 fine to the Exchange; and (2) be permanently banned from (a) applying for Membership at any CME Group exchange; (b) direct or indirect access to any trading or clearing platform owned or controlled by the CME Group, Inc.; and (c) access to any trading floor owned or operated by any CME Group, Inc. exchange, including CME Globex.