• #
      • CME-17-0790-BC
      • Effective Date
      • 05 August 2019
    • FILE NO.:

      CME 17-0790-BC


      Han Keun Kim


      Rule 432. (“General Offenses”) (in part):

      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 convened hearing, scheduled staff interview or in connection with any investigation.

      Rule 575. Disruptive Practices Prohibited (in part):

      All orders must be entered for the purpose of executing bona fide transactions. Additionally, all non-actionable messages must be entered in good faith for legitimate purposes.

      A. 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.


      On April 9, 2019, a Panel of the Chicago Mercantile Exchange (“CME”) Probable Cause Committee (“PCC”) charged non-member Han Keun Kim (“Kim”) with violating CBOT Rules 432.L.1. and 575.A. based on allegations that from August 24, 2017, through October 9, 2017, Kim entered orders in the E-mini NASDAQ 100 futures markets on Globex with the intent, at the time of order entry, to cancel the order before execution or to modify the order to avoid execution, and that Kim failed to appear at a scheduled interview with Market Regulation in connection with its investigation.

      On June 17, 2019, a Hearing Panel Chair of the CME Business Conduct Committee (“BCC”) entered an order finding that Kim failed to answer the charges issued against him. In failing to answer the charges, the Hearing Panel Chair further ordered that Kim was deemed to have admitted the charges issued and waived his right to a hearing on the merits of the charges.
      Pursuant to CME Rule 407.C., a penalty hearing was held before a Panel of the BCC (“Panel”) on July 17, 2019. The Panel found Kim guilty of committing the admitted charges.


      Based on the record and the Panel’s findings and conclusions, the Panel ordered Kim to pay a fine in the amount of $60,000, and permanently barred Kim from (1) membership and privileges at any CME Group Exchange, (2) direct or indirect access and use of any CME Group trading floor, electronic trading platform or clearing platform owned or operated by any CME Group Exchange, and (3) affiliation with, employment by or association with a Member (as this term is defined in Rule 400) or affiliate of a Member of any CME Group Exchange.


      August 5, 2019