• NOTICE OF DISCIPLINARY ACTION

      • #
      • COMEX 16-0581-BC
      • Effective Date
      • 17 October 2018
    • NON-MEMBER:

      XIANG LIN

      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. 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 Xiang Lin (“Lin”) with violating NYMEX Rules 575.A. and 432.L.1., based on allegations that on several trade dates in October 2016, Lin entered orders in December 2016 Copper futures with the intent, at the time of order entry, to cancel the order before execution on one or more occasions and also failed to appear before Exchange stuff at a scheduled staff interview.

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

      PENALTY:

      In accordance with NYMEX Rule 402.B (Sanctions), the BCC Panel ordered Lin to (1) pay a fine in the amount of $60,000; 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.