NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

YONG SEOKJUN

NYMEX RULES:

Rule 575. Disruptive Practices Prohibited (In Part)

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 or messages with intent to mislead other market participants.

FINDINGS:

On July 28, 2022, the Chief Regulatory Officer of CME Group’s Market Regulation Department issued charges against Yong Seokjun for violating NYMEX Rules 575.A. and 575.B. based on allegations that during the time period of July 23, 2020 through October 28, 2020, Seokjun entered orders in various Natural Gas futures markets: (1) with the intent, at the time of order entry, to cancel those orders before execution or to modify the orders to avoid execution and (2) with the intent to mislead other market participants.

On December 15, 2022, a Hearing Panel Chair of the NYMEX Business Conduct Committee (“BCC”) first determined that Seokjun, having failed to submit a written answer to the charges issued against him, was deemed to have admitted the charges. Seokjun therefore waived his right to a hearing on the merits of the charges. Pursuant to NYMEX Rule 408.F., a BCC Panel then found Seokjum 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 Seokjun to pay a fine in the amount of $35,000 ($5,000 allocated to NYMEX), disgorge profits in the amount of $760 ($100 allocated to NYMEX), and serve a five-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 January 6, 2023 and continue for five years from the date that payment of the fine is paid in full.