Notice of Disciplinary Action

NON-MEMBER:

JAESUNG JIN

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.

Rule 576 Identification of Globex Terminal Operators

Each Globex Terminal Operator shall be identified to the Exchange, in the manner prescribed by the Exchange, and shall be subject to Exchange rules. If operator IDs are required to be registered with the Exchange, it is the duty of the clearing member to ensure that registration is current and accurate at all times. Each individual must use a unique operator ID to access Globex. In no event may a person enter an order or permit the entry of an order by an individual using an operator ID other than the individual’s own unique operator ID.

FINDINGS:

On Feb. 2, 2023, the Chief Regulatory Officer of CME Group’s Market Regulation Department issued charges against Jaesung Jin for violating NYMEX Rules 575.A., 575.B., and 576 based on allegations that between Sept. 8, 2021, and Sept. 16, 2021, Jin used his sister’s Operator ID to enter orders in OCT21 Natural Gas futures: (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. Specifically, Jin repeated a pattern in which he placed a single order for a large quantity at the best bid (offer) followed by an order for a small quantity at the best offer (bid). Once his small-quantity order traded in the market, Jin canceled his large-quantity order. Further, Jin occasionally canceled his large-quantity orders prior to receiving a fill on his small-quantity orders. As a result of these rule violations, Jin received a $660 monetary benefit.

On September 6, 2023, a Hearing Panel Chair of the NYMEX Business Conduct Committee (“BCC”) first determined that Jin, having failed to submit a written answer to the charges issued against him, was deemed to have admitted the charges. Jin therefore waived his right to a hearing on the merits of the charges. Pursuant to NYMEX Rule 408.F., a BCC Panel then found Jin 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 Jin to pay a fine in the amount of $50,000, disgorge profits in the amount of $660, 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 the effective date of the BCC’s decision and continue for five years from the date that payment of the fine and disgorgement is paid in full.