• NOTICE OF DISCIPLINARY ACTION

      • #
      • NYMEX 20-1353-BC-2
      • Effective Date
      • 19 November 2021
    • NON-MEMBER:

      Chun Ming Chang

      NYMEX RULES:

      Rule 432.G. General Offenses (In Part)

      It shall be an offense to prearrange the execution of transactions in Exchange products for the purpose of transferring equity between accounts.

      Rule 576. Identification of Globex Terminal Operators (In Part)

      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:

      Pursuant to an offer of settlement in which Chun Ming Chang neither admitted nor denied the findings, conclusions or any rule violations upon which the penalty is based, on November 17, 2021, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that, on multiple occasions between June 1 and June 5, 2020, Chang prearranged the execution of buy and sell orders in the December 2020 Crude Oil 2800 and 3600 Call options markets between an account owned by Chang and an account another individual owned for the purpose of transferring a substantial amount of equity between these accounts. Further, Chang entered orders utilizing a user ID other than his own unique user ID.

      The Panel found that as a result of the foregoing, Chang violated NYMEX Rules 432.G and 576.

      PENALTY:

      In accordance with the settlement offer, the Panel ordered Chang to pay a fine to the Exchange in the amount of $40,000 and serve a 20 business day 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 November 19, 2021 through, and including, December 17, 2021.