International derivatives marketplace CME Group has published a notice of disciplinary action against Aaron Dao Chang Pang.

The Chief Regulatory Officer of CME Group’s Market Regulation Department issued charges against Aaron Dao Chang Pang for violating Rules 432.B.1., 432.C., and 432.I., based on the following allegations.

From at least July 2018, through November 2019, Pang made false representations in 3 Crowns Capital Pte. Ltd.’s application to CME Group’s International Incentive Program (“IIP”). Specifically, Pang misrepresented 3 Crowns as a proprietary trading firm in order to participate in the IIP and receive reduced trading fees in the Silver futures markets. As a result, 3 Crowns received a reduction in trading fees in the amount of $3,398,251.18.

A Hearing Panel Chair of the COMEX Business Conduct Committee (“BCC”) found Pang 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 Pang to pay a fine in the amount of $250,000 in connection with this case and companion case NYMEX 19-1122-BC ($100,000 allocated to COMEX), to serve a permanent 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, and to be permanently restricted from having a business affiliation with, be employed by or have a financial or beneficial interest in a Member or broker association.

The Panel also ordered that Pang and 3 Crowns Capital be jointly and severally liable for disgorgement in the amount of $3,398,251.18.