• NOTICE OF DISCIPLINARY ACTION

      • #
      • COMEX 16-0554-BC-2
      • Effective Date
      • 30 October 2018
    • NON-MEMBER:

      Wang Yiwu

      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.

      FINDINGS:

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

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

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

      PENALTY:

      In accordance with Exchange Rule 402.B (Sanctions), the BCC Panel ordered Yiwu to (1) pay a fine in the amount of $50,000; 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.