NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:              

Po Kang Ting

CME RULE VIOLATIONS:                  

Rule 432             General Offenses (in part)

It shall be an offense:

B.1         To engage, or attempt to engage, in fraud or bad faith

G.           To pre-arrange the execution of transactions in Exchange products for the purpose of transferring equity between accounts.

T.           To engage in dishonorable or uncommercial conduct.

Rule 576             Identification of Global Terminal Operators

Each Globex terminal operator shall be identified to the Exchange, in the manner prescribed by the Exchange, and shall be subject to Exchange rules. If user IDs are required to be registered with the Exchange, it is the duty of the clearing member to ensure that registration is current and accurate at all times. 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 April 17, 2020, the Chicago Mercantile Exchange (“CME”) Chief Regulatory Officer issued charges against non-member Po Kang Ting for violating CME Rules 432.B.1, 432.G., 432.T and 576 based on allegations that on one or more occasions between April 12, 2018, and April 20, 2018, Ting, a financial advisor based in Taiwan, used round-turn transactions in various E-Mini S&P options markets to transfer equity between accounts belonging to three of his customers. He also provided falsified profit and loss statements to his clients for the purpose of concealing account losses. Ting also directed one client to deposit money into the account of one of the other clients, which had the effect of hiding losses in the client’s account.

On November 18, 2020, a Hearing Panel Chair of the CME Business Conduct Committee (“BCC”) first determined that Ting, having failed to submit a written answer to the charges issued against him, was deemed to have admitted the charges. Ting, therefore, waived his right to a hearing on the merits of the charges. Pursuant to CME Rule 408.F., a BCC Panel then found Ting guilty of committing the admitted charges and held a penalty hearing thereafter.  

PENALTY:                         

Based on the record and the Panel’s findings and conclusions, the Panel ordered Ting to pay a fine in the amount of $200,000, and permanently suspended Ting 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.

EFFECTIVE DATE:                               

December 10, 2020