CME permanently suspends trader for violation of CBOT rules
International derivatives marketplace CME Group has posted a notice of disciplinary action against Yueyu Bao.
The Chief Regulatory Officer issued charges against Yueyu Bao for violating CBOT Rules 432.G., and 432.L.1., based on allegations that from October 12, 2021, through November 9, 2021, Bao prearranged the execution of transactions in various Wheat, Oat, and Soybean Meal futures markets for the purpose of transferring equity between accounts and for Bao’s failure to appear before Exchange staff for a scheduled staff interview.
A Hearing Panel Chair of the CBOT Business Conduct Committee (BCC) found that Bao failed to submit a written answer to the charges issued against him and that Bao was deemed to have admitted the charges. Bao therefore waived his right to a hearing on the merits of the charges.
Pursuant to CBOT Rule 408.F., a BCC Panel found Bao 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 Bao to pay a fine of $50,000. The Panel also permanently suspended Bao 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.
The effective date of the disciplinary action is November 28, 2023.