NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

David Xiao Ju

CME RULE VIOLATIONS:

Rule 432 General Offenses (In Part)

It shall be an offense:

G. to prearrange the execution of transactions in Exchange products for the purpose of transferring equity between accounts;

L.3. to fail to produce any books or records requested by duly authorized Exchange staff, in the format and medium specified in the request, within 10 days after such request is made or such shorter period of time as determined by the Market Regulation Department in exigent circumstances.

FINDINGS:

Pursuant to an offer of settlement in which David Xiao Ju neither admitted nor denied the Rule violations or factual findings upon which the penalty is based, on March 22, 2023, a Panel of the Chicago Mercantile Exchange Business Conduct Committee (“Panel”) found that on August 12, 2020, and August 13, 2020, Ju prearranged the execution of round-turn transactions in multiple September 2020 E-mini Nasdaq-100 Options markets between an account owned by his employer and another individual’s account for the purpose of transferring funds from the employer’s account to the other individual’s account. In addition, Ju failed to produce responsive records requested by the Exchange in a timely manner. The Panel concluded that Ju thereby violated CME Rules 432.G.and 432.L.3.

PENALTY:

In accordance with the settlement offer, the Panel ordered Ju to pay a $50,000 fine and to 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 the effective date below and continue through and including March 24, 2028. Additionally, the Panel ordered Ju and his co-respondent to jointly and severally pay restitution of $13,150 to the employer who experienced losses as a result of the activity.

EFFECTIVE DATE:                          

March 24, 2023