NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

HAI HONG NING

NYMEX RULES: 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.

432. General Offenses (in part)

It shall be an offense:

L. 1. to fail to appear before the Board, Exchange staff or any investigative or hearing committee at a duly convened hearing, scheduled staff interview or in connection with any investigation.

FINDINGS:

On July 5, 2022, the Chief Regulatory Officer of CME Group’s Market Regulation Department issued charges against Hai Hong Ning for violating Rules 539.A. and 432.L.1., based on allegations that during the time period of July 16, 2018, through May 14, 2019, Ning prearranged and noncompetitively executed multiple transactions in the Heating Oil and Palladium futures markets, and failed to appear before Exchange staff for a scheduled interview.

On December 15, 2022, a Hearing Panel Chair of the NYMEX Business Conduct Committee (“BCC”) first determined that Ning, having failed to submit a written answer to the charges issued against her, was deemed to have admitted the charges. Ning therefore waived her right to a hearing on the merits of the charges. Pursuant to Rule 408.F., a BCC Panel then found Ning 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 Ning to pay a fine in the amount of $75,000, and permanently suspended Ning 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.