Notice of Disciplinary Action

NON-MEMBER:

SINOK AN

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.1. To fail to appear before the Board, Exchange staff or any investigative or hearing committee at a duly convened hearing, scheduled staff interview or in connection with any investigation.

FINDINGS:

On April 17, 2023, the Chief Regulatory Officer of CME Group’s Market Regulation Department issued charges against Sinok An for violating Rules 539.A., 432.G., and 432.L.1. based on allegations that from August 2021, though May 2022, An 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 Palladium futures contracts for the purpose of transferring equity between accounts. An also failed to appear for an Exchange staff scheduled interview.

On September 6, 2023, a Hearing Panel Chair of the NYMEX Business Conduct Committee (“BCC”) first determined that An, having failed to submit a written answer to the charges issued against her, was deemed to have admitted the charges. An therefore waived her right to a hearing on the merits of the charges. Pursuant to Rule 408.F., a BCC Panel then found An 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 An to pay a fine in the amount of $70,000 in connection with this case and companion cases CME 22-1546-BC, CBOT 22-1546-BC and COMEX 22-1546-BC ($30,000 allocated to NYMEX) and permanently suspended An 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.