• NOTICE OF DISCIPLINARY ACTION

      • #
      • CBOT 17-0812-BC
      • Effective Date
      • 22 February 2019
    • FILE NO.:

      CBOT 17-0812-BC

      NON-MEMBER:

      Songke Wei

      CBOT RULE VIOLATIONS:

      Rule 432 (“General Offenses”) (in relevant part)

      It shall be an offense:

      G. to prearrange the execution of transactions in Exchange products for the purpose of transferring equity between accounts.

      FINDINGS:

      Pursuant to an offer of settlement in which Songke Wei (“Wei”) neither admitted nor denied the rule violations or factual findings upon which the penalty is based, on February 20, 2019, a Panel of the Chicago Board of Trade (“CBOT”) Business Conduct Committee (“Panel”) found that between October 31, 2016, and October 5, 2017, Wei executed a series of round-turn transactions in various illiquid Oats futures markets on the CME Globex electronic platform between a corporate account he funded and controlled and his personal account. As a result of these round-turn transactions, Wei’s personal account profited $11,512.50 and the corporate account sustained a corresponding loss. Additionally, the Panel found that a few of Wei’s trades in the round-turn transactions established a new high in the contract month. The Panel further found that the funds that were transferred from the corporate account to Wei’s personal account were reimbursed. The Panel concluded that Wei thereby violated CBOT Rule 432.G.

      PENALTY:

      In accordance with the settlement offer, the Panel ordered Wei to pay a fine of $25,000 and to have his access to all CME Group trading floors and direct and indirect access to all electronic trading and clearing platforms owned or controlled by CME Group suspended for a period of ten business days. The suspension shall run from February 22, 2019, through March 7, 2019, inclusive.

      EFFECTIVE DATE:

      February 22, 2019