NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:          

Yun Xiang Yang

CME RULE VIOLATION:      

Rule 539.A Prearranged, Pre-Negotiated and Noncompetitive Trades Prohibited
(in part)

No person shall prearrange or pre-negotiate any purchase or sale or noncompetitively execute any transaction.

FINDINGS:         

Pursuant to an offer of settlement in which Yun Xiang Yang (“Yang”) neither admitted nor denied the rule violations or factual findings upon which the penalty is based, on August 12, 2020, a Panel of the Chicago Mercantile Exchange (“CME”) Business Conduct Committee (“Panel”) found that on numerous occasions between November 23, 2018 and January 14, 2019, Yang prearranged the execution of numerous trades in the March 2019 and June 2019 E-mini NASDAQ 100 (“E-mini NASDAQ”) futures market opposite other non-member traders implementing Yang’s trading strategy. Specifically, the Panel found that Yang engaged in pre-execution communications with the other traders prior to entering matching orders, including discussing trading strategy, the timing of order placement, and the pricing of E-mini NASDAQ futures on Globex.

The Panel concluded that Yang thereby violated CME Rule 539.A.

PENALTY:          

In accordance with the settlement offer, the Panel ordered Yang to pay a fine of $10,000. 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 for ten (10) business days, beginning on the effective date below and continuing through and including August 27, 2020.

EFFECTIVE DATE:                

August 14, 2020