• NOTICE OF DISCIPLINARY ACTION

      • #
      • CME-17-0640-BC-1
      • Effective Date
      • 07 December 2018
    • FILE NO.:

      CME 17-0640-BC

      NON-MEMBER:

      JoErik Financial Pte. Ltd.

      CME RULE VIOLATION:

      Rule 432.W. General Offenses

      It shall be an offense for any party to fail to diligently supervise its employees and agents in the conduct of their business relating to the Exchange.

      FINDINGS:

      Pursuant to an offer of settlement in which JoErik Financial Pte. Ltd. (“JoErik”) neither admitted nor denied the rule violation upon which the penalty is based, on December 5, 2018, a Panel of the Chicago Mercantile Exchange Business Conduct Committee (“Panel”) found that on multiple dates between June 1, 2016, and February 15, 2017, a trader employed by JoErik entered and canceled multiple layered orders in CME Nikkei/Yen futures markets on the Globex electronic trading platform without the intent to trade, but rather, to encourage market participants to trade opposite the smaller orders he entered that were resting on the opposite side of the order book. After receiving a fill on the smaller order, the trader canceled the layered orders. The Panel thus concluded that JoErik failed to provide sufficient training and failed to proactively monitor the employee to ensure that the employee conducted his trading activity in compliance with Exchange rules, in violation of Rule 432.W.

      PENALTY:

      In accordance with the settlement offer, the Panel ordered JoErik to pay a fine of $30,000 and disgorgement of profits in the amount of $20,326.50.

      EFFECTIVE DATE:

      December 7, 2018