International derivatives marketplace CME Group has published a notice of disciplinary action against Arkady Markov.

Pursuant to an offer of settlement in which Arkady Markov neither admitted nor denied the rule violations or factual findings upon which the penalty is based, a Panel of the Chicago Mercantile Exchange (CME) Business Conduct Committee found that on September 18, 2023, Markov, while managing accounts, entered a single matching buy and a sell order in December 2023 Standard Size USD/Offshore RMB futures for two accounts of different entities with common beneficial ownership for the purpose of transferring position risk between the two accounts.

The orders traded against each other, and Markov knew or reasonably should have known that the entry of the orders would result in a prohibited wash result.

Additionally, the Panel found that Markov failed to appear before Exchange staff at a scheduled staff interview.

The Panel concluded that as a result of the foregoing, Markov violated CME Rules 432.L.1. and 534.

In accordance with the settlement offer, the Panel ordered Markov to pay a fine of $20,000 and suspended his 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 for one year, beginning on the effective date and continuing for one year after the ordered fine is paid in full.

The effective date of the notice is February 28, 2025.