NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

QIAO PENG

RULE VIOLATION: CME RULE 575. DISRUPTIVE PRACTICES PROHIBITED (in part)

All orders must be entered for the purpose of executing bona fide transactions. Additionally, all non-actionable messages must be entered in good faith for legitimate purposes.

A. No person shall enter or cause to be entered an order with the intent, at the time of order entry, to cancel the order before execution or to modify the order to avoid execution.

FINDINGS:

On April 7, 2020, the CME Group Chief Regulatory Officer (“CRO”) charged Qiao Peng (“Peng”) with violating CME Rule 575.A. based on allegations that Peng entered or caused to be entered an order with the intent, at the time of order entry, to cancel the order before execution or to modify the order to avoid execution in the Euro and Japanese Yen futures markets from April 2, 2018 to June 26, 2018.

On September 23, 2020, a Hearing Panel Chair of the CME Business Conduct Committee (“BCC”) first determined that Peng, having failed to submit a written answer to the charge issued against him, was deemed to have admitted the charge. Peng, therefore, waived his right to a hearing on the merits of the charge. Pursuant to CME Rule 408.F., a BCC Panel then found Peng guilty of committing the admitted charge and held a penalty hearing thereafter.

PENALTY:

Based on the record and the Panel’s findings and conclusions, the Panel ordered Peng to pay a fine in the amount of $40,000 and serve a five 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.