NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

Wangquan Zhao

CME RULE VIOLATIONS:

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 November 5, 2020, the CME Group Chief Regulatory Officer (“CRO”) charged Wangquan Zhao (“Zhao”) with violating CME Rule 575.A. based on allegations that Zhao entered or caused to be entered orders with the intent, at the time of order entry, to cancel the orders before execution or to modify the orders to avoid execution in the British Pound , Euro FX, and Japanese Yen futures markets from December 1, 2018 through December 10, 2019.

On June 21, 2021, a Hearing Panel Chair of the CME Business Conduct Committee (“BCC”) first determined that Zhao, having failed to submit a written answer to the charge issued against him, was deemed to have admitted the charge. Zhao therefore waived his right to a hearing on the merits of the charge. Pursuant to CME Rule 408.F., a BCC Panel then found Zhao 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 Zhao to pay a fine in the amount of $30,000. The Panel also suspended Zhao from all 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 and continuing for a period of five years after the fine is paid in full.

EFFECTIVE DATE:

July 9, 2021