• NOTICE OF DISCIPLINARY ACTION

      • #
      • COMEX 17-0705-BC
      • Effective Date
      • 05 December 2018
    • NON-MEMBER:

      GE SHUAI

      RULE VIOLATIONS:

      EXCHANGE RULE 575.A. DISRUPTIVE PRACTICES PROHIBITED

      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.

      EXCHANGE RULE 576 IDENTIFICATION OF GLOBEX TERMINAL OPERATORS

      Each Globex terminal operator shall be identified to the Exchange, in the manner prescribed by the Exchange, and shall be subject to Exchange rules. If user IDs are required to be registered with the Exchange, it is the duty of the clearing member to ensure that registration is current and accurate at all times. Each individual must use a unique user ID to access Globex. In no event may a person enter an order or permit the entry of an order by an individual using a user ID other than the individual’s own unique user ID.

      FINDINGS:

      On August 9, 2018, a Panel of the Commodity Exchange (“COMEX”) Probable Cause Committee charged Ge Shuai (“Ge”) with violating Exchange Rules 575.A. and 576 based on allegations that between February 23, 2017 and March 10, 2017, Ge, entering orders using a Tag 50 registered in the name of another person, engaged in disruptive trading activity in the Gold and Silver Futures markets by entering orders without the intent to trade. Specifically, Ge typically entered a larger order on one side of the market and then cancelled them after resting smaller orders on the opposite side of the book were executed.

      On October 11, 2018, a Hearing Panel Chair of the COMEX Business Conduct Committee (“BCC”) entered an order finding that Ge failed to answer the charges against him. The Hearing Panel Chair further ordered that Ge was deemed to have admitted the charges issued and waived his right to a hearing on the merits of the charges.

      On November 15, 2018, a penalty hearing was held before a panel of the COMEX BCC (“BCC Panel”) which found that Ge had committed the violations charged.

      PENALTY:

      In accordance with Exchange Rule 402.B (Sanctions), the BCC Panel ordered Ge to pay a total monetary fine in the amount of $60,000 and to be permanently banned from membership privileges, access to any CME Group, Inc. trading floor, and direct and indirect access to all electronic trading and clearing platforms owned or controlled by CME Group, Inc