CME fines, suspends trader for violations of COMEX rules
International derivatives marketplace CME Group has posted a notice of disciplinary action against Ting Jiang.
Pursuant to an offer of settlement in which Ting Jiang neither admitted nor denied the rule violations upon which the penalty is based, a Panel of the COMEX Business Conduct Committee found that between July 27, 2021, and September 7, 2021, Jiang, the CEO of his trading firm, entered buy and sell orders in the same product and expiration month in the Aluminum futures market on behalf of an account owned by his firm in order to test his firm’s trading system to ensure trades were being properly allocated.
Jiang 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.
The Panel further found that on September 27, 2021, and September 28. 2021, Jiang, along with another firm employee, prearranged transactions in the Aluminum Futures calendar spread market between an account owned by the firm and an account owned by another firm employee, which was opened at the direction of Jiang.
The purpose of these trades was also to test his firm’s trading and allocation system.
The Panel ordered Jiang to pay a fine in the amount of $25,000 and to serve a 90-business-day suspension from direct 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 will run from trade date November 17, 2023, through and including trade date April 1, 2024.