NOTICE OF DISCIPLINARY ACTION

FILE NO.:

COMEX 14-9920-BC

NON-MEMBER:

JASON KOSSON

EXCHANGE RULES: 432. General Offenses

It shall be an offense:

Q. to commit an act which is detrimental to the interest or welfare of the Exchange or to engage in any conduct which tends to impair the dignity or good name of the Exchange;

T. to engage in dishonorable or uncommercial conduct;

FINDINGS:

Pursuant to an offer of settlement Jason Kosson (“Kosson”) presented at a hearing on October 28, 2014, in which Kosson neither admitted nor denied the rule violations or the finding or conclusions herein upon which the penalty is based, a Panel of the COMEX Business Conduct Committee (“BCC Panel”) found that Kosson was subject to the jurisdiction of the Exchange pursuant to Exchange Rules 402 and 418, and that on one or more occasions between April 2013 and June 2013, Kosson entered orders in various Gold, Silver and Copper futures contracts on the CME Globex electronic trading platform during the pre-opening session that were not for the purpose of executing bona fide transactions. The Panel found that the entry and subsequent cancellation of these orders caused fluctuations in the publicly displayed Indicative Opening Price (“IOP”).

The Panel found that as a result of the foregoing, Kosson violated Rule 432.Q. and 432.T.

PENALTY:

In accordance with the settlement offer, the BCC Panel ordered Kosson to pay a fine of $7,500.

Please see companion cases NYMEX 13-9503-BC and CME 14-9919-BC.

EFFECTIVE DATE:

October 30, 2014