CME fines, suspends trader for engaging in disruptive practices
International derivatives marketplace CME Group today issued a notice of disciplinary action against Jun-Ming Lai. Lai will have to pay a fine and will be suspended for five years due to violations of the rules concerning prohibited disruptive practices.
Following an evidentiary hearing on the merits commenced on November 15, 2022, a Panel of the COMEX Business Conduct Committee found that, on one or more occasions between April 2, 2020, and May 6, 2020, Jun-Ming Lai entered orders in the June 2020 COMEX Gold futures markets with the intent, at the time of order entry, to cancel the orders to avoid execution, and with the intent to mislead other market participants. Specifically, Lai entered these orders as layered orders on one side of the market and generally near the top of the order book.
The Panel concluded that the strategy Lai implemented was in direct violation of Exchange Rules 575.A. and B.
Accordingly, the Panel found Lai guilty violating COMEX Rules 575.A and 575.B.
Based upon the record and the Panel’s findings and conclusions, the Panel ordered Lai to pay a total fine in the amount of $80,000 in connection with this case and companion case NYMEX 20-1319-BC, $20,000 of which shall be paid to COMEX, and to serve a five-year trading suspension from 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 begin on June 2, 2023 and continue for five years from the date that payment of the fine is received in full.