NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

CHESTER GORSKI

COMEX RULE VIOLATIONS:

RULE 524. TRADING AT SETTLEMENT (“TAS”) AND TRADING AT MARKER (“TAM”) TRANSACTIONS (in part):

The Exchange shall determine the products, contract months and time periods during which TAS and TAM transactions shall be permitted. Specific products, contract months and spreads eligible for pricing as TAS or TAM transactions are set forth in the TAS and TAM Table (“Table”) at the end of Chapter 5.

A. The following shall govern TAS transactions:

1. A TAS order may be entered on Globex at any time the applicable contract is available for TAS trading on Globex and during such TAS-eligible contract’s prescribed pre-open time period. The initiation of any TAS order on Globex outside these time periods is prohibited.

CME GROUP MARKET REGULATION ADVISORY NOTICE RA2116-5 (in part):

Market participants must have appropriate protocols in place to ensure that TAS orders are not initiated prior to receipt of the security status message.

FINDINGS:

Pursuant to an offer of settlement in which Chester Gorski neither admitted nor denied the rule violations upon which the penalty is based, on June 21, 2023, a Panel of the COMEX Business Conduct Committee (“Panel”) found that, on March 3, 2022, Gorski entered a Trading at Settlement (TAS) order in the April 2022-June 2022 Gold TAS calendar spread contract prior to the security status message stating that the Gold TAS group had entered a pre-open state, and failed to have appropriate protocols in place to ensure that TAS orders were not initiated prior to receipt of the security status message.

The Panel found that as a result, Gorski violated COMEX Rules 524 and 524.A.

PENALTY:

In accordance with the settlement offer, the Panel ordered Gorski to pay a fine in the amount of $5,000 and be prohibited from initiating any TAS, TAM, BTIC, or TACO order on Globex during each group’s pre-open state for a period of 10-business-days.