International derivatives marketplace CME Group has posted a notice of disciplinary action against Kin Chung Lam.

Pursuant to an offer of settlement, in which Kin Chung Lam neither admitted nor denied the Rule violations or factual findings upon which the penalty is based, on May 7, 2025, a Panel of the COMEX Business Conduct Committee found that on trade dates December 1, 2023, and December 4, 2023, Lam executed multiple wash trades in various outright Aluminum futures and calendar spreads.

Specifically, Lam engaged in a pattern of trading in which he entered a spread order prior to entering a passive outright order that corresponded with one of the contract months of the spread order. Lam then entered an aggressive outright order, which corresponded with the other contract month of the initial spread order and resulted in implied self-matched trades between the spread order and the outright orders for the same trading account.

The Panel found that Lam knew or reasonably should have known that the purpose of the orders was to avoid taking a bona fide market position exposed to market risk.

The Panel found that as a result of the foregoing, Lam violated COMEX Rule 534.

In accordance with the settlement offer, the Panel ordered Lam to pay a $50,000 fine and serve a 15-business-day 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 run through trade date May 30, 2025.