NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

Tsung Zone Lee

COMEX RULE: RULE 575.A. (DISRUPTIVE PRACTICES PROHIBITED)

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:

Pursuant to an offer of settlement in which Tsung Zone Lee neither admitted nor denied the rule violation upon which the penalty is based, on November 17, 2021, a Panel of the COMEX Business Conduct Committee (“Panel”) found that from March 20, 2020, through May 14, 2020, Lee 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 May 2020 and July 2020 Silver futures markets. Specifically, Lee entered a large order or layered orders on one side of the market that he cancelled after receiving fills on the order(s) Lee entered on the other side of the market.

The Panel found that as a result of the foregoing, Lee violated COMEX Rule 575.A.

PENALTY:

In accordance with the settlement offer, the Panel ordered Lee to pay a $35,000 fine and serve a 30 business day suspension to 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 November 19, 2021 through January 3, 2022, inclusive.