• NOTICE OF DISCIPLINARY ACTION

      • #
      • COMEX 16-0543-BC-2
      • Effective Date
      • 08 May 2019
    • NON-MEMBER:

      ZIAO XU

      RULE VIOLATION: NYMEX RULE 432. GENERAL OFFENSES (IN PART)

      It shall be an offense:

      L. 2. to fail to fully answer all questions or produce all books and records at such hearing or in connection with any investigation, or to make false statements.

      FINDINGS:

      On January 29, 2019, a Panel of the Commodity Exchange (“COMEX”) Probable Cause Committee charged Ziao Xu (“Xu”) with violating NYMEX Rule 432.L.2. based on allegations that Xu failed to fully answer all questions in connection with the Exchange’s investigation.

      On March 27, 2019, a Hearing Panel Chair of the COMEX Business Conduct Committee (“BCC”) entered an order finding that Xu failed to answer the charge against him. The Hearing Panel Chair further ordered that Xu was deemed to have admitted the charge issued and waived his right to a hearing on the merits of the charge.

      On April 17, 2019, a penalty hearing was held before a panel of the COMEX BCC (“BCC Panel”) which found that Xu had committed the violation charged.

      PENALTY:

      In accordance with NYMEX Rule 402.B (Sanctions), the BCC Panel ordered Xu to serve a permanent ban 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.