NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

LEI LIU

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 Lei Liu (“Liu”) with violating CME Rule 575.A. based on allegations that Liu 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, British Pound and Japanese Yen futures markets from March 8, 2018 to May 28, 2018

On September 23, 2020, a Hearing Panel Chair of the CME Business Conduct Committee (“BCC”) first determined that Liu, having failed to submit a written answer to the charge issued against him, was deemed to have admitted the charge. Liu, therefore, waived his right to a hearing on the merits of the charge. Pursuant to CME Rule 408.F., a BCC Panel then found Liu 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 Liu to pay a fine in the amount of $75,000 and be permanently barred 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.