NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

Kong Kin Nang

CME RULE VIOLATION:

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;

FINDINGS:

Pursuant to an offer of settlement in which Kong Kin Nang (“Kong”) neither admitted nor denied the rule violation or factual findings upon which the penalty is based, on December 7, 2023, a Panel of the Chicago Mercantile Exchange (“CME”) Business Conduct Committee (“Panel”) found that on multiple instances between February 15, 2022, through May 26, 2022, Kong entered orders in March and June 2022 E-mini Nasdaq-100 futures markets with the intent, at the time of order entry, to cancel those orders before execution or to modify the orders to avoid execution. Specifically, Kong entered either a larger order or several layered orders on one side of the market and then canceled these orders after receiving fills on the smaller resting orders he entered on the same or opposite side of the market. As a result of his activity, Kong realized a benefit of $735,455. The Panel concluded that Kong thereby violated CME Rule 575.A.

PENALTY:

In accordance with the settlement offer, the Panel ordered Kong to pay a $75,000 fine, disgorge profits in the amount of $735,455, and serve a 25-business day suspension 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. The suspension shall begin on the effective date and continue for 25-business days from the date that the ordered fine and disgorgement are paid.