International derivatives marketplace CME Group has issued a notice of disciplinary action against Park Jae Yeol.

On December 11, 2023, the Chief Regulatory Officer of CME Group’s Market Regulation Department issued charges against Park Jae Yeol for violating COMEX Rules 432.L.2, 575.B, and 576 based on allegations that on multiple occasions between October 21, 2020, and December 14, 2020, the authorized trader for Park’s account entered actionable messages in various COMEX Copper futures with the intent to mislead other market participants and receive favorable pricing.

Park’s agent exhibited a pattern of order entry and modification that alternated between creating buy-side pressure and sell-side pressure in order to induce market participants to trade into his smaller resting quantity on the opposite side of the market. The imbalance induced market participants to trade into his orders for smaller quantities he entered or modified on the opposite side of the market. Similarly, if a market participant improved the bid or offer after being misled by the market imbalance he created, Park’s agent aggressively traded into the improved price.

In addition, Park permitted his agent to enter orders using an Operator ID other than his own and failed to fully answer all questions in connection with Market Regulation’s investigation.

On June 4, 2024, a Hearing Panel Chair of the COMEX Business Conduct Committee (“BCC”) first determined that Park, having failed to submit a written answer to the charges issued against him, was deemed to have admitted the charges. Park therefore waived his right to a hearing on the merits of the charges. Pursuant to COMEX Rule 408.F., a BCC Panel then found Park 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 Park to pay a total fine in the amount of $100,000, and to be permanently barred 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 effective date of the disciplinary notice is June 24, 2024.