• NOTICE OF DISCIPLINARY ACTION

      • #
      • COMEX 17-0766-BC-1
      • Effective Date
      • 28 October 2019
    • NON-MEMBER:

      Boston Metal Co., Ltd.

      COMEX RULE VIOLATIONS:

      COMEX Rule 432 General Offenses (in part)

      It shall be an offense:

      W. For any party to fail to diligently supervise its employees and agents in the conduct of their business relating to the Exchange;

      COMEX Rule 576 Identification of Globex Terminal Operators (in part)

      Each individual must use a unique user ID to access Globex. In no event may a person enter an order or permit the entry of an order by an individual using a user ID other than the individual’s own unique user ID.

      FINDINGS:

      On April 9, 2019, a Panel of the Commodity Exchange (“COMEX”) Probable Cause Committee (“PCC”) charged non-member Boston Metal Co., Ltd. (“Boston Metal”) with violating COMEX Rules 432.W. and 576 based on allegations that on one or more occasions between January 1, 2017, and June 30, 2017, Boston Metal failed to diligently supervise the trading activity of its employee while the employee entered orders with the intent, at the time of entry, to cancel or modify the orders before execution in one or more instances in the April 2017, June 2017, and August 2017 Gold futures markets and the March 2017, May 2017, and July 2017 Silver futures markets, and failed to ensure that its traders each employed a unique Tag50 User ID to access Globex.

      On September 23, 2019, a Hearing Panel Chair of the COMEX Business Conduct Committee (“BCC”) entered an order finding that Boston Metal failed to answer the charges issued against it. In failing to answer the charges, the Hearing Panel Chair further ordered that Boston Metal was deemed to have admitted the charges issued and waived its right to a hearing on the merits of the charges.

      Pursuant to COMEX Rule 407.C., a penalty hearing was held before a Panel of the BCC (“Panel”) on October 10, 2019. The Panel found Boston Metal guilty of committing the admitted charges.

      PENALTY:

      Based on the record and the Panel’s findings and conclusions, the Panel ordered Boston Metal to pay a fine in the amount of $40,000.