Notice of Disciplinary Action

NON-MEMBER:

INBUM JO

NYMEX RULES:

539. Prearranged, Pre-Negotiated and Noncompetitive Trades Prohibited (In Part)

539.A. General Prohibition

No person shall prearrange or pre-negotiate any purchase or sale or noncompetitively execute any transaction.

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.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 April 17, 2023, the Chief Regulatory Officer of CME Group’s Market Regulation Department issued charges against Inbum Jo for violating Rules 539.A., 432.G., and 432.L.2. based on allegations that from June 2021, through June 2022, Jo prearranged the purchase or sale or noncompetitively executed transactions in the Crude Oil, Palladium, and Natural Gas futures market, and prearranged the execution of transactions in Natural Gas and Palladium futures contracts for the purpose of transferring equity between accounts. Jo also made false statements to Market Regulation staff during his investigatory interview.

On September 6, 2023, a Hearing Panel Chair of the NYMEX Business Conduct Committee (“BCC”) first determined that Jo, having failed to submit a written answer to the charges issued against him, was deemed to have admitted the charges. Jo therefore waived his right to a hearing on the merits of the charges. Pursuant to Rule 408.F., a BCC Panel then found Jo 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 Jo to pay a fine in the amount of $80,000 in connection with this case and companion cases CME 22-1546-BC, CBOT 22-1546-BC and COMEX 22-1546-BC ($40,000 allocated to NYMEX) and permanently suspended Jo from direct 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.