NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

Yong Liang Lin

NYMEX RULE VIOLATIONS: Rule 432 (“General Offenses”) (in part)

It shall be an offense:

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

Rule 534. Wash Trades Prohibited (In part)

No person shall place … buy and sell orders in the same product and expiration month … where the person knows or reasonably should know that the purpose of the orders is to avoid taking a bona fide market position exposed to market risk (transactions commonly known as wash sales). Buy and sell orders for different accounts with common beneficial ownership that are entered with the intent to negate market risk or price competition shall also be deemed to violate the prohibition on wash trades.

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 October 10, 2019, a Panel of the Commodity Exchange (“COMEX”) Probable Cause Committee charged non-member Yong Liang Lin with violating COMEX Rules 432.G., 534, and 576 based on allegations that on one or more occasions between September 1, 2017, and September 19, 2017, Lin prearranged the execution of transactions in the June 2020 Gold futures market; placed orders in the same product and expiration month that he knew or reasonably should have known would trade opposite each other for common beneficial owners; and entered an order using a user ID other than his own unique user ID.

On November 8, 2019, a Hearing Panel Chair of the COMEX Business Conduct Committee (“BCC”) entered an order finding that Lin failed to answer the charges issued against him. In failing to answer the charges, the Hearing Panel Chair further ordered that Lin was deemed to have admitted the charges issued and waived his 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 November 20, 2019. The Panel found Lin guilty of committing the admitted charges. 

PENALTY:

Based on the record and the Panel’s findings and conclusions, the Panel ordered Lin to pay a fine in the amount of $40,000 ($20,000 of which is allocated to COMEX), and suspended Lin 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 for two years, beginning on the effective date below and continuing for two years from the date that the ordered fine is paid.