NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

Kim Junyeong

NYMEX RULE VIOLATIONS:

RULE 575. DISRUPTIVE PRACTICES PROHIBITED (in part)

All orders must be entered for the purpose of executing bona fide transactions. Additionally, all non-actionable messages must be entered in good faith for legitimate purposes.

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(s) with intent to mislead other market participants.

FINDINGS:

On February 24, 2023, the CME Group Chief Regulatory Officer (“CRO”) charged Kim Junyeong with violating NYMEX Rules 575.A. and 575.B. based on allegations that on one or more occasions from February 9, 2021, through June 29, 2021, Kim entered orders in Natural Gas futures markets with the intent, at the time of order entry, to cancel the orders before execution and with the intent to mislead other market participants. Kim engaged in a pattern of layering orders on the same side of the market to influence others to trade opposite his smaller orders resting on the opposite side of the market. As a result of this activity, Kim profited $3,920.00.

On June 21, 2023, a Hearing Panel Chair of the NYMEX Business Conduct Committee (“BCC”) first determined that Kim, having failed to submit a written answer to the charges issued against him, was deemed to have admitted the charges. Kim therefore waived his right to a hearing on the merits of the charges. Pursuant to NYMEX Rule 408.F., a BCC Panel then found Kim 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 Kim to pay a $60,000 fine in connection with this case and companion case CBOT 21-1492-BC ($20,000 of which is allocated to NYMEX), and to disgorge profits in the amount of $9,712 ($3,920.00 allocated to NYMEX). The Panel also suspended Kim from all direct and indirect access to any designated contract market, derivatives clearing organization, or swap execution facility owned or controlled by CME Group Inc., beginning on the effective date below and continuing for a period of five years after the fine and disgorgement is paid in full.

EFFECTIVE DATE:

July 12, 2023