• NOTICE OF DISCIPLINARY ACTION

      • #
      • NYMEX 16-0582-BC
      • Effective Date
      • 17 October 2018
    • NON-MEMBER:

      LI MIAN FENG

      RULE VIOLATION:

      NYMEX RULE 575.A. DISRUPTIVE PRACTICES PROHIBITED

      No person shall enter or cause to be entered an order with the intent, at thetime of order entry, to cancel the order before execution or to modify the order to avoid execution.

      NYMEX RULE 433. STRICT LIABILITY FOR THE ACTS OF AGENTS

      Pursuant to Section 2(a)(1)(B) of the Commodity Exchange Act, and notwithstanding Rule 432.W., the act, omission, or failure of any official, agent, or other person acting for any party within the scope of his employment or office shall be deemed the act, omission or failure of the party, as well as of the official, agent or other person who committed the act.

      FINDINGS:

      On June 6, 2018, a Panel of the New York Mercantile Exchange (“NYMEX”) Probable Cause Committee charged Li Mian Feng (“Li”) with violating NYMEX Rule 575.A. based on allegations that, pursuant to NYMEX Rule 433, Li’s automated trading system Bing Fa Jiao Yi caused orders to be entered into the Crude Oil Futures, Henry Hub Natural Gas Futures, and Palladium Futures markets, between September 2016 and January 2017, with the intent, at the time of order entry, to cancel the order before execution.

      On August 8, 2018, a Hearing Panel Chair of the NYMEX Business Conduct Committee (“BCC”) entered an order finding that Li failed to answer the charge against him. The Hearing Panel Chair further ordered that Li was deemed to have admitted the charge 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 NYMEX BCC (“BCC Panel”) which found that Li had committed the violation charged.

      PENALTY:

      In accordance with NYMEX Rule 402.B (Sanctions), the BCC Panel ordered Li pay a total monetary fine in the amount of $80,000, e.g., $30,000 of the monetary fine is allocated to NYMEX 16-0582-BC and $50,000 is allocated to COMEX 16-0582-BC, and (2) to serve a four- week trading suspension from: a) membership privileges; b) access to any CME Group, Inc. trading floor, and c) direct and indirect access to all electronic trading and clearing platforms owned or controlled by CME Group, Inc. The suspension shall run from October 17, 2018 through, and including November 14, 2018.