NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

Christopher Fleming

EXCHANGE RULE VIOLATION:

RULE 534. WASH TRADES PROHIBITED

No person shall place or accept buy and sell orders in the same product and expiration month, and, for a put or call option, the same strike price, where the person knows or reasonably should know that the purpose of the orders is to avoid taking a bona fide market position exposed to market risk (transactions commonly known or referred to as wash sales). Buy and sell orders for different accounts with common beneficial ownership that are entered with the intent to negate market risk or price competition shall also be deemed to violate the prohibition on wash trades. Additionally, no person shall knowingly execute or accommodate the execution of such orders by direct or indirect means.

FINDINGS:

Pursuant to an offer of settlement in which Christopher Fleming neither admitted nor denied the Rule violation or factual findings upon which the penalty is based, on December 14, 2021 a Panel of the COMEX Business Conduct Committee (“Panel”) found that on September 30 and October 12, 2020, Fleming placed opposing orders in COMEX Gold and Silver futures for accounts with common beneficial ownership, resulting in those orders trading opposite one another. Fleming placed the opposing buy and sell orders with the knowledge and intent that the orders would trade opposite one another and avoid taking a bona fide market position, for the purpose of rebalancing positions.

The Panel concluded that Fleming thereby violated COMEX Rule 534.

PENALTY:

In accordance with the settlement offer, the Panel ordered Fleming pay a fine of $20,000 and serve a 10-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 December 16, 2021 through, and including, December 30, 2021.