NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

PEI XU

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 Pei Xu for violating Rules 539.A., and 432.L.1. based on allegations that from July 16, 2018, through May 14, 2019, Xu prearranged and noncompetitively executed multiple transactions in the Heating Oil, Palladium, Platinum and RBOB futures market, 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 Xu, having failed to submit a written answer to the charges issued against her, was deemed to have admitted the charges. Xu therefore waived her right to a hearing on the merits of the charges. Pursuant to Rule 408.F., a BCC Panel then found Xu 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 Xu to pay a fine in the amount of $75,000 in connection with this case and companion case COMEX 19-1122-BC ($50,000 allocated to NYMEX) and permanently suspended Xu 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.