NOTICE OF DISCIPLINARY ACTION

MEMBER:

DANIEL SHAK

RULE VIOLATION:

EXCHANGE RULE 575.A. DISRUPTIVE PRACTICES PROHIBITED

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:

Pursuant to an offer of settlement that Daniel Shak (“Shak”) presented at a hearing on December 10, 2020, in which Shak neither admitted nor denied the findings or conclusions or the rule violation upon which the below penalty is based, a Panel of the COMEX Business Conduct Committee (“BCC Panel”) found that, between September 2017 and March 2018, Shak engaged in disruptive trading activity in the Silver and Gold Futures contract markets by entering orders without the intent to trade. Specifically, the Panel found that Shak typically entered larger orders on one side of the market and then cancelled them after resting smaller orders on the opposite side of the book were executed.

The BCC Panel concluded that, as a result, Shak violated Exchange Rule 575.A.

PENALTY:

In accordance with the settlement offer, the BCC Panel ordered Shak to pay a monetary fine in the amount of $65,000 and to serve a 9 business day trading 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. The suspension shall run from December 14, 2020 through, and including, December 24, 2020.