CME fines JihSun Futures for violations of disruptive practices prohibition
JihSun Futures Co. Ltd has agreed to pay a fine of $75,000 as a part of a settlement with CME regarding violations of rules concerning disruptive practices. JihSun Futures neither admitted nor denied the Rule violations.
A Panel of the Chicago Mercantile Exchange Business Conduct Committee found that from January 1, 2020, to March 9, 2021, JihSun employees entered and canceled orders in various Foreign Exchange and Equities futures markets on the Globex electronic trading platform during the pre-open period that were not entered for the purpose of executing bona fide transactions. Rather, the employees entered and canceled the orders during the pre-open period to test JihSun’s trading platform.
The entry and cancelation of these orders caused fluctuations in the publicly displayed Indicative Opening Price. After being notified of the issue by Market Regulation, JihSun employees continued to enter and cancel non-bona fide test orders during the pre-open period.
The Panel further found that JihSun failed to diligently supervise or train its employees in a manner sufficient to ensure that their conduct was consistent with Exchange rules. The Panel concluded that JihSun thereby violated CME Rules 575.A. and 432.W.
In accordance with the settlement offer, the Panel ordered JihSun to pay a $75,000 fine in connection with this case and several companion cases.