• NOTICE OF DISCIPLINARY ACTION

      • #
      • NYMEX 18-0915-BC-2
      • Effective Date
      • 25 October 2019
    • NON-MEMBER:

      ZE QIAN

      EXCHANGE RULES: RULE 432. GENERAL OFFENSES

      It shall be an offense:

      G. to prearrange the execution of transactions in Exchange products for the purpose of transferring equity between accounts.

      FINDINGS:

      Pursuant to an offer of settlement in which Ze Qian (“Qian”) neither admitted nor denied the rule violations or factual findings upon which the penalty is based, on October 23, 2019, a Panel of the New York Mercantile Exchange (“NYMEX”) Business Conduct Committee (“BCC” or “Panel”) found that during the time period from December 11, 2017 to March 1, 2018, Qian prearranged the execution of round-turn transactions in Steel futures contracts between a trading account he traded for his employer, and another account owned and traded by another individual. The purpose of these round-turn transactions was to allow Qian’s employer to obtain trade credits from the Exchange’s Steel futures market maker incentive program.

      The Panel found that as a result of the foregoing, Qian violated NYMEX Rule 432.G. (“General Offenses - Prearrange Execution of Transactions for Purpose of Transferring Equity between Accounts”).

      PENALTY:

      In accordance with the settlement offer and taking his financial condition into consideration, the BCC Panel ordered Qian to pay a $5,000 fine and to serve a two-year 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 October 25, 2019 through, and including, October 25, 2021.