International derivatives marketplace CME Group has posted a notice of disciplinary action against Kim Junyeong.

The CME Group Chief Regulatory Officer charged Kim Junyeong with violating CBOT Rules 575.A. and 575.B. based on allegations that on one or more occasions from February 9, 2021, through June 29, 2021, Kim entered orders in Soybean Oil and Corn futures markets with the intent, at the time of order entry, to cancel the orders before execution and with the intent to mislead other market participants.

Kim engaged in a pattern of layering orders on the same side of the market to influence others to trade opposite his smaller orders resting on the opposite side of the market. As a result of this activity, Kim profited $5,792.00.

A Hearing Panel Chair of the CBOT Business Conduct Committee (BCC) first determined that Kim, having failed to submit a written answer to the charges issued against him, was deemed to have admitted the charges. Kim therefore waived his right to a hearing on the merits of the charges. Pursuant to CBOT Rule 408.F., a BCC Panel then found Kim guilty of committing the admitted charges and held a penalty hearing thereafter.

Based on the record and the Panel’s findings and conclusions, the Panel ordered Kim to pay a $60,000 fine in connection with this case and companion case NYMEX 21-1492-BC ($40,000 of which is allocated to CBOT), and to disgorge profits in the amount of $9,712 ($5,792 allocated to CBOT).

The Panel also suspended Kim from all direct and indirect access to any designated contract market, derivatives clearing organization, or swap execution facility owned or controlled by CME Group Inc., beginning on the effective date below and continuing for a period of five years after the fine and disgorgement is paid in full.

The notice is effective July 12, 2023.