CME permanently suspends trader for CBOT rule violations
International derivatives marketplace CME Group has taken a disciplinary action against Xiao Hu Liu.
The Chief Regulatory Officer of CME Group’s Market Regulation Department issued charges against Liu for violating Rules 432.C., 432.G., and 432.L.3., based on allegations that from July 7 2021, through July 9, 2021, Liu prearranged the execution of transactions in March 2022 E-mini Dow and June 2022 E-mini Dow futures markets for the purpose of transferring equity from trading accounts owned by two other traders to Liu’s account, using account login information that he had stolen from those traders.
Liu also failed to produce records requested by Exchange staff.
A Hearing Panel Chair of the CBOT Business Conduct Committee (BCC) first determined that Liu, having failed to submit a written answer to the charges issued against him, was deemed to have admitted the charges. Liu therefore waived his right to a hearing on the merits of the charges.
Pursuant to Rule 408.F., a BCC Panel then found Liu 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 Liu to pay a fine in the amount of $150,000 in connection with this case and companion case ($125,000 allocated to CBOT) and permanently suspended Liu 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.