NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

JEONG TAEWON

NYMEX RULE:

534. Wash Trades Prohibited

No person shall place or accept buy and sell orders in the same product and expiration month, and, for a put or call option, the same strike price, where the person knows or reasonably should know that the purpose of the orders is to avoid taking a bona fide market position exposed to market risk (transactions commonly known or referred to as wash sales). Buy and sell orders for different accounts with common beneficial ownership that are entered with the intent to negate market risk or price competition shall also be deemed to violate the prohibition on wash trades. Additionally, no person shall knowingly execute or accommodate the execution of such orders by direct or indirect means.

FINDINGS:

On January 3, 2024, the Chief Regulatory Officer of CME Group’s Market Regulation Department issued a charge against Jeong Taewon for violating Rule 534. based on allegations that, from July 19, 2022, through September 27, 2022, Jeong knowingly placed buy and sell orders in the same product and expiration month, where he knew or reasonably should have known that the purpose of the orders was to avoid taking a bona fide market position exposed to market risk in various Natural Gas Options markets.

On May 15, 2024, a Hearing Panel Chair of the NYMEX Business Conduct Committee (“BCC”) first determined that Jeong, having failed to submit a written answer to the charges issued against him, was deemed to have admitted the charges. Jeong therefore waived his right to a hearing on the merits of the charges. Pursuant to Rule 408.F., a BCC Panel then found Jeong guilty of committing the admitted charge and held a penalty hearing thereafter.

PENALTY:

Based on the record and the Panel’s findings and conclusions, the Panel ordered Jeong to pay a fine in the amount of $50,000 in connection with this case and companion case CME 22-1621-BC ($15,000 allocated to NYMEX) and to serve a three-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 May 31, 2024 and continue for three years from the date that payment of the fine is paid in full.