• NOTICE OF DISCIPLINARY ACTION

      • #
      • COMEX 17-0768-BC
      • Effective Date
      • 30 January 2020
    • NON-MEMBER:

      LIANG CHEN

      RULE VIOLATIONS:

      EXCHANGE RULE 432 GENERAL OFFENSES

      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.

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

      FINDINGS:

      Pursuant to an offer of settlement Liang Chen (“Chen”) presented at a hearing on January 28, 2020, in which Chen neither admitted nor denied the rule violations upon which the penalty is based, a Panel of the COMEX Business Conduct Committee (“BCC Panel”) found that on trade date May 4, 2017, an ATS that Chen programmed, malfunctioned, causing multiple market orders to be entered on one side of the market in the July 2017 Copper futures contract, resulting in price movement and volume spikes. The Panel further found that after failing to identify the cause of the ATS malfunction, Chen re-deployed the ATS back into a live environment, which malfunctioned again, causing similar market moving malfunction on May 24, 2017.

      The Panel found that as a result of the foregoing, Chen violated Rule 432.Q. and 432.W.

      PENALTY:

      In accordance with the settlement offer, the BCC Panel ordered Chen to pay a total monetary fine in the amount of $25,000 and to serve a 30 business day 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 January 30, 2020 through March 12, 2020, inclusive.