NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

Wang Liangwu

EXCHANGE RULE:

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 of wash trades. Additionally, no person shall knowingly execute or accommodate the execution of such orders by direct or indirect means.

FINDINGS:

Pursuant to an offer of settlement that Wang Liangwu (“Wang”) presented at a hearing on September 30, 2015, in which Wang neither admitted nor denied the rule violations upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that Wang is subject to the jurisdiction of the Exchange pursuant to Rules 400 and 418 and that on March 5, 2014, and March 26, 2014, Wang and another Huikon Capital Inc. (“Huikon”) trader entered a series of wash trades in Crude Oil Calendar Spreads between accounts with the same beneficial owner.

The Panel found that as a result of the foregoing, Wang violated NYMEX Rule 534.

PENALTY:

In accordance with the settlement offer, the Panel ordered Wang to (1) pay a fine to the Exchange in the amount of $15,000; and (2) serve a 5 business day suspension from (a) applying for membership at any CME Group exchange; (b) direct or indirect access to all electronic trading and clearing platforms owned or controlled by the CME Group Inc., including CME Globex; and (c) access to any trading floor owned or controlled by any CME Group, Inc. exchange. The suspension shall run from October 2, 2015 through and including October 8, 2015.