• NOTICE OF DISCIPLINARY ACTION

      • #
      • COMEX 18-0866-BC
      • Effective Date
      • 16 September 2019
    • NON-MEMBER:

      JOHN TIMOTHY LAWRENCE

      RULE VIOLATION: EXCHANGE RULE 575.A. DISRUPTIVE PRACTICES PROHIBITED

      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.

      FINDINGS:

      Pursuant to an offer of settlement that John Timothy Lawrence (“Lawrence”) presented at a hearing on August 28, 2019, in which Lawrence neither admitted nor denied the rule violation upon which the below penalty is based, a Panel of the COMEX Business Conduct Committee (“BCC Panel”) found that, between June 2017 and January 2018, Lawrence engaged in disruptive trading activity in the Silver and Gold Futures contract markets by entering orders without the intent to trade. Specifically, the Panel found that Lawrence typically entered larger orders on one side of the market and then cancelled them after resting smaller orders on the opposite side of the book were executed.

      The BCC Panel found that, as a result, Lawrence violated Exchange Rule 575.A.

      PENALTY:

      In accordance with the settlement offer, the BCC Panel ordered Lawrence to pay a monetary fine in the amount of $70,000 and to serve a four-month trading suspension from access to any trading floor owned or controlled by CME Group and from direct and indirect access to any designated contract market, derivatives clearing organization or swap execution facility owned or controlled by CME Group. The suspension shall run from September 16, 2019 through, and including, January 16, 2020.