NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

Euibin Im

CME RULES:

Rule 534. Wash Trades Prohibited

No person shall place or accept buy and sell orders in the same product and expiration month, and, for a put or call option, the same strike price, where the person knows or reasonably should know that the purpose of the orders is to avoid taking a bona fide market position exposed to market risk (transactions commonly known or referred to as wash sales). Buy and sell orders for different accounts with common beneficial ownership that are entered with the intent to negate market risk or price competition shall also be deemed to violate the prohibition on wash trades. Additionally, no person shall knowingly execute or accommodate the execution of such orders by direct or indirect means.

Rule 432. General Offenses (in part)

It shall be an offense:

L.2 To fail to fully answer all questions or produce all books and records at such hearing or in connection with any investigation, or to make false statements;

FINDINGS:

On August 2, 2022, the Chief Regulatory Officer issued charges against Euibin Im for violating CME Rules 534 and 432.L.2. based on allegations that between March 2, 2020, and May 14, 2021, Im operated an automated trading system (“ATS”) that entered orders in CME Australian Dollar, Euro FX, and NASDAQ E-Mini futures and traded opposite his resting orders the ATS previously entered. The Business Conduct Committee (“BCC”) found that Im knew or reasonably should have known that the purpose of the orders was to avoid taking a bona fide market position exposed to market risk. In addition, the BCC found that Im failed to fully answer all questions and produce all books and records in connection with Market Regulation’s investigation into this matter.

On March 15, 2023, a Hearing Panel Chair of the CME BCC found that Im failed to submit a written answer to the charges issued against him and that Im was deemed to have admitted the charges. Im therefore waived his right to a hearing on the merits of the charges.

Pursuant to CME Rule 408.F., a BCC Panel found Im 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 Im to pay a fine in the amount of $80,000 in connection with this case and companion case COMEX 21-1459-BC ($65,000 of which is allocated to CME), 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 April 5, 2023 and continue for five years from the date that payment of the fine is paid in full.