NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

Vu Tuan Anh

CBOT RULE VIOLATIONS:

Rule 432 General Offenses (in part)

It shall be an offense:

B.1. to engage, or attempt to engage, in fraud or bad faith;

B.2. to engage in conduct or proceedings inconsistent with just and equitable principles of trade;

C. to engage in dishonest conduct.

Rule 530 Priority of Customers’ Orders (in part)

No person shall enter an order into the Globex platform for his own account, an account in which he has a direct or indirect financial interest or an account over which he has discretionary trading authority, including, without limitation, an order allowing discretion as to time and price, when such person is in possession of any order for another person that the Globex platform is capable of accepting

Rule 532 Disclosing Orders Prohibited

With the exception of transactions executed in accordance with the requirements of Rules 526, 538, 539 and 549, no person shall disclose another person's order to buy or sell except to a designated Exchange official or the CFTC, and no person shall solicit or induce another person to disclose order information. An order for pit execution is not considered public until it has been bid or offered by open outcry. No person shall take action or direct another to take action based on non-public order information, however acquired. The mere statement of opinions or indications of the price at which a market may open or resume trading does not constitute a violation of this rule.

Rule 575 Disruptive Practices Prohibited (in part)

All orders must be entered for the purpose of executing bona fide transactions. Additionally, all non-actionable messages must be entered in good faith for legitimate purposes.

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(s) with intent to mislead other market participants.

FINDINGS:

On April 13, 2022, the Chief Regulatory Officer issued charges against Vu Tuan Anh for violating CBOT Rules 432.B.1., 432.B.2., 432.C., 530, 532, 575.A., and 575.B., based on allegations that from May 11, 2020, through August 6, 2020, Vu entered orders in several Wheat, Soybean Meal, Soybean, and Corn contracts in his employer’s account without the intent to trade. Vu entered the orders in the employer’s account with the intent to mislead other market participants and to benefit orders in Vu’s personal account.

Additionally, between May 11, 2020, and July 22, 2020, Vu engaged in fraudulent and dishonest conduct. During that time, Vu executed trades for his personal account opposite the account he traded for his employer (“matched trades”). He also engaged in front running by entering orders on Globex for his own account while in possession of an executable order for his employer’s account. Further, Vu executed trades for his personal account based on nonpublic order information he obtained by placing orders in his employer’s account. Vu profited $15,460 as a result of this activity.

On September 22, 2022, a Hearing Panel Chair of the CBOT Business Conduct Committee (“BCC”) found that Vu failed to submit a written answer to the charges issued against him and that Vu was deemed to have admitted the charges. Vu therefore waived his right to a hearing on the merits of the charges.

Pursuant to CBOT Rule 408.F., a BCC Panel found Vu 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 that Vu pay a fine of $250,000 and disgorgement in the amount of $15,460. The Panel also permanently suspended Vu from direct 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 beginning on the effective date below.

EFFECTIVE DATE:

October 10, 2022