NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:              

Zeng Fang

CME RULE VIOLATION:                    

Rule 432. General Offenses (in part)

It shall be an offense:

L.1. to fail to appear before the Board, Exchange staff or any investigative or hearing committee at a duly convened hearing, scheduled staff interview or in connection with any investigation.

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

A. General Prohibition

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

FINDINGS:                       

On July 24, 2020, the Chief Regulatory Officer of the CME Group’s Designated Contract Markets charged Zeng Fang with violating CME Rules 432.L.1. and 539 based on allegations that between September 14, 2018, and May 14, 2019, Fang prearranged or pre-negotiated the purchase or sale of British Pound, Swiss Franc, Canadian Dollar, and New Zealand Dollar futures contracts and failed to appear for a scheduled staff interview in connection with the investigation.

On November 18, 2020, a Hearing Panel Chair of the CME Business Conduct Committee (“BCC”) entered an order finding that Fang failed to answer the charges issued against her. In failing to answer the charges, the Hearing Panel Chair further ordered that Fang was deemed to have admitted the charges issued and waived her right to a hearing on the merits of the charges.

Pursuant to CME Rule 407.C., a penalty hearing was held before a Panel of the BCC (“Panel”) on November 18, 2020. The Panel found Fang guilty of committing the admitted charges.

PENALTY:                         

Based on the record and the Panel’s findings and conclusions, the Panel ordered that Fang pay a fine of $35,000. The Panel also permanently suspended Fang from direct 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 Inc. beginning on the effective date below.

EFFECTIVE DATE:                               

December 10, 2020