• NOTICE OF DISCIPLINARY ACTION

      • #
      • CME-17-0672-BC
      • Effective Date
      • 27 November 2019
    • FILE NO.:

      CME 17-0672-BC

      NON-MEMBER:

      Hong Xiang Yang

      CME RULE VIOLATIONS:

      432. General Offenses (in part)

      It shall be an offense:

      Q. to commit an act which is detrimental to the interest or welfare of the Exchange or to engage in any conduct which tends to impair the dignity or good name of the Exchange;

      576. Identification of Globex Terminal Operators

      Each Globex terminal operator shall be identified to the Exchange, in the manner prescribed by the Exchange, and shall be subject to Exchange rules. If user IDs are required to be registered with the Exchange, it is the duty of the clearing member to ensure that registration is current and accurate at all times. 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:

      Pursuant to an offer of settlement in which Hong Xiang Yang (“Yang”) neither admitted nor denied the rule violations upon which the penalty is based, on November 25, 2019, a Panel of the Chicago Mercantile Exchange Business Conduct Committee (“Panel”) found that between October 9, 2016, and continuing to December 5, 2016, Yang permitted one or more individuals to use his Tag 50 User ID to enter orders on the Exchange. The Panel found that Yang’s conduct impeded the Exchange’s ability to further investigate potentially violative messaging activity by one or more individuals who utilized Yang’s Tag 50 in the December 2016 Australian Dollar futures market. The Panel concluded that Yang thereby violated Rules 432.Q. and 576.

      PENALTY:

      In accordance with the settlement offer, the Panel ordered Yang to pay a fine to the Exchange in the amount of $25,000. The Panel also suspended Yang 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 beginning on the effective date below and continuing for thirty business days after the fine is paid in full.

      EFFECTIVE DATE:

      November 27, 2019