NOTICE OF SUMMARY ACTION

FILE NO.:

NYMEX DQA-20-0282

MEMBER FIRM:

XIN HUA SECURITIES (HONG KONG) LIMITED

RULE VIOLATION:

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 user 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 user ID to access Globex. In no event may a person enter an order or permit the entry of an order by an individual using a user ID other than the individual’s own unique user ID.

FINDINGS:

During the period of October 1, 2019 through December 31, 2019, Xin Hua Securities (Hong Kong) Limited violated Rule 576 by submitting a Tag 50 ID used by multiple individuals.

PENALTY:

On April 2, 2020, Xin Hua Securities (Hong Kong) Limited, pursuant to Rule 512 (“Reporting Infractions”), was collectively issued a $5,000 fine for its violation of Rule 576:  NYMEX - $2,500; COMEX - $2,500.

Xin Hua Securities (Hong Kong) Limited subsequently filed a written appeal.  On July 16, 2020, Xin Hua withdrew its appeal.

EFFECTIVE DATE:

August 4, 2020