NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

ZHIXIANG ZHOU

COMEX RULES:

Rule 575. Disruptive Practices Prohibited (In Part)

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.

B. No person shall enter or cause to be entered an actionable or non-actionable message or messages with intent to mislead other market participants.

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:

On April 25, 2022, the Chief Regulatory Officer of CME Group’s Market Regulation Department issued charges against Zhixiang Zhou for violating COMEX Rules 575.A., 575.B. and 576 based on allegations that between August 13, 2020 and September 14, 2020, Zhou entered orders in the December 2020 Gold Futures (“DEC20 Gold”) futures market: (1) with the intent, at the time of order entry, to cancel those orders before execution or to modify the orders to avoid execution and (2) with the intent to mislead other market participants. In addition, Zhou permitted others to enter orders utilizing his unique user ID.

On July 6, 2022, a Hearing Panel Chair of the COMEX Business Conduct Committee (“BCC”) first determined that Zhou, having failed to submit a written answer to the charges issued against him, was deemed to have admitted the charges. Zhou therefore waived his right to a hearing on the merits of the charges. Pursuant to COMEX Rule 408.F., a BCC Panel then found Zhou guilty of committing the admitted charges and held a penalty hearing thereafter.

PENALTY:

Based on the record and the Panel’s findings and conclusions, the Panel ordered Zhou to pay a fine in the amount of $60,000 and be permanently barred 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.