NOTICE OF DISCIPLINARY ACTION

FILE NO.:

NYMEX 13-9524-BC

MEMBER:

David Lee

EXCHANGE RULES: Rule 432. General Offenses

It shall be an offense:

G. to prearrange the execution of transactions in Exchange products for the purpose of transferring equity between accounts;

FINDINGS:

Pursuant to an offer of settlement that David Lee (“Mr. Lee”) presented at a hearing on September 17, 2014, in which Mr. Lee neither admitted nor denied the findings or the rule violations upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that on May 28, 2013, and June 12, 2013, Mr. Lee executed two round turn transactions, consisting of four trades, on the CME Globex platform which resulted in the transfer of equity of $2000.00 in the aggregate between one account owned by Mr. Lee and a second account.

The Panel found that as a result of the foregoing, Mr. Lee violated Exchange Rule 432.G.

PENALTY:

In accordance with the settlement offer, the Panel ordered Mr. Lee to pay a fine to the Exchange in the amount of $35,000. The Panel also suspended Mr. Lee from all membership privileges and direct or indirect access to any trading floor or electronic trading or clearing platform owned or operated by CME Group Inc., including Globex, for a period of 10 business days. The suspension will run from September 19, 2014 through, and including, October 2, 2014.

EFFECTIVE DATE:

September 19, 2014