NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

ZHI TAO LI

NYMEX RULE:

NYMEX 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 July 5, 2022, the Chief Regulatory Officer of CME Group’s Market Regulation Department issued a charge against Zhi Tao Li for violating Rule 539.A., based on allegations that during the time period of July 3, 2019 through July 10, 2019, Li prearranged and noncompetitively executed multiple transactions in the Crude Oil, Platinum and Palladium futures markets.

On December 15, 2022, a Hearing Panel Chair of the NYMEX Business Conduct Committee (“BCC”) first determined that Li, having failed to submit a written answer to the charge issued against him, was deemed to have admitted the charge. Li therefore waived his right to a hearing on the merits of the charge. Pursuant to Rule 408.F., a BCC Panel then found Li 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 Li to pay a fine in the amount of $50,000, and to 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.