• NOTICE OF DISCIPLINARY ACTION

      • #
      • COMEX 17-0659-BC-4
      • Effective Date
      • 28 June 2019
    • NON-MEMBER:

      YUHAO CHEN

      EXCHANGE RULE: Rule 432.L. General Offenses

      It shall be an offense:

      L.1. to fail to appear before the Board, Exchange staff or any investigative or hearing committee at a duly a convened hearing, scheduled staff interview or in connection with any investigation.

      FINDINGS:

      On December 6, 2018, a panel of the Commodity Exchange (“COMEX”) Probable Cause Committee determined that there was a reasonable basis to charge Yuhao Chen (“Chen”) with having violated Exchange Rule 432.L.1. (General Offenses-Failure to Appear) and referred the matter to the COMEX Business Conduct Committee.

      Pursuant to an offer of settlement that Chen presented at a hearing on June 26, 2019, in which Chen neither admitted nor denied the findings or the rule violations upon which the penalty is based, a Panel of the COMEX Business Conduct Committee found that Chen failed to appear before Exchange staff for a scheduled interview in relation to Chen’s order entry and trading activity in various COMEX precious metal markets in November and December of 2016.

      The Panel found that as a result of the foregoing, Chen violated Exchange Rule 432.L.1.

      PENALTY:

      In accordance with the settlement offer, the Panel ordered Chen to pay a fine to the Exchange in the amount of $40,000 and suspended Chen’s access to any CME Group trading floor, and direct or indirect access to any CME Group electronic trading or clearing platform for one year, beginning on the effective date below. The suspension will run from June 28, 2019 through June 28, 2020.