NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

LIANG CAI

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 Liang Cai for violating Rules 539.A. and 432.L.1., based on allegations that during the time period of July 3, 2019 through July 10, 2019, Cai prearranged and noncompetitively executed multiple transactions in the Crude Oil, Platinum 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 Cai, having failed to submit a written answer to the charges issued against him, was deemed to have admitted the charges. Cai therefore waived his right to a hearing on the merits of the charges. Pursuant to Rule 408.F., a BCC Panel then found Cai 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 Cai to pay a fine in the amount of $50,000, and permanently suspended Cai 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.