NOTICE OF DISCIPLINARY ACTION

NON-MEMBER

QUN CHEN

COMEX RULE:

COMEX 539. PREARRANGED, PRE-NEGOTIATED AND NONCOMPETITIVE TRADES PROHIBITED (in part)

539.A. General Prohibition

No person shall prearrange or pre-negotiate any purchase or sale or noncompetitively execute any transaction.

FINDINGS:

On March 18, 2022, the Chief Regulatory Officer of CME Group’s Market Regulation Department issued a charge against Qun Chen for violating COMEX Rule 539.A. based on allegations that on September 9, 2020, Chen prearranged the purchase or sale or noncompetitively executed transactions in the Gold futures market.

On September 8, 2022, a Hearing Panel Chair of the COMEX Business Conduct Committee (“BCC”) first determined that Chen, having failed to submit a written answer to the charge issued against her, was deemed to have admitted the charge. Chen therefore waived her right to a hearing on the merits of the charge. Pursuant to COMEX Rule 408.F., a BCC Panel then found Chen guilty of committing the admitted charge and held a penalty hearing thereafter.

PENALTY:

Based on the record and the Panel’s findings and conclusions, the Panel ordered Chen to pay a fine in the amount of $40,000, and serve a one-year 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 begin on the effective date and continue for one year from the date that payment of the fine is received in full.