• NOTICE OF DISCIPLINARY ACTION

      • #
      • COMEX 16-0554-BC-1
      • Effective Date
      • 30 October 2018
    • NON-MEMBER:

      Wang Jian

      EXCHANGE RULES:

      RULE 575.A. DISRUPTIVE PRACTICES PROHIBITED

      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.

      RULE 432.L.1. GENERAL PRACTICES - FAILURE TO APPEAR

      It shall be an offense:

      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 5, 2018, a Panel of the Commodity Exchange (“COMEX”) Probable Cause Committee charged Wang Jian (“Jian”) with violating Exchange Rules 575.A. and 432.L.1. based on allegations that on multiple trade dates between September 2016 and November 2016, while active in the December 2016 Silver and December 2016 Copper futures markets, Jian coordinated with Wang Yiwu (“Yiwu”) to execute a trading strategy that consisted of Jian or Yiwu repeatedly entering and canceling multiple orders on one side of the market to facilitate the execution of orders Jian or Yiwu had previously placed on the opposite side of the market, in addition to failing to appear before Exchange staff for a scheduled interview.

      On August 8, 2018, a Hearing Panel Chair of the COMEX Business Conduct Committee (“BCC”) entered an order finding that Jian failed to answer the charges against him. The Hearing Panel Chair further ordered that Jian 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 Jian had committed the violations charged.

      PENALTY:

      In accordance with Exchange Rule 402.B (Sanctions), the BCC Panel ordered Jian to (1) pay a fine in the amount of $100,000; 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.