NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

YI ZOU

NYMEX RULE:

Rule 432. General Offenses (in part)

It shall be an offense:

G. To prearrange the execution of transactions in Exchange products for the purpose of transferring equity between accounts.

Rule 576. Identification of Globex Terminal Operators

Each Globex Terminal Operator shall be identified to the Exchange, in the manner prescribed by the Exchange, and shall be subject to Exchange rules. If operator IDs are required to be registered with the Exchange, it is the duty of the clearing member to ensure that registration is current and accurate at all times. Each individual must use a unique operator ID to access Globex. In no event may a person enter an order or permit the entry of an order by an individual using an operator ID other than the individual’s own unique operator ID.

FINDINGS:

Pursuant to an offer of settlement in which Yi Zou neither admitted nor denied the rule violations upon which the penalty is based, on March 2, 2022, a Panel of the COMEX Business Conduct Committee (“BCC Panel”) found that from March 3, 2021, through March 8, 2021, Zou pre-arranged the execution of round turn transactions in various Copper futures markets between an account he owned and another account he controlled for the purpose of transferring equity between these accounts. Zou also used another individual’s unique operator ID to enter these orders on Globex.

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

PENALTY:

In accordance with the settlement offer, the BCC Panel ordered Zou to pay a $20,000 fine and serve a five 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 March 4, 2022 through March 10, 2022, inclusive.