CME suspends trader for disruptive practices
CME has taken disciplinary action against Yon Tee Han for engaging in disruptive practices.
Pursuant to an offer of settlement in which Han neither admitted nor denied the rule violation or factual findings upon which the penalty is based, on March 4, 2021, a Panel of the Chicago Mercantile Exchange (CME) Business Conduct Committee found that from December 1, 2019, through March 31, 2020, Han entered non-bona fide stop orders and limit orders – occasionally through the existing bid/offer – in E-mini S&P 500 futures during the pre-open period, and the entry and cancelation of these orders caused fluctuations in the publicly displayed Indicative Opening Price.
The Panel found that Han entered the orders to experiment with order placement and familiarize himself with his trading platform. The Panel concluded that Han violated CME Rule 575.A.
In relevant part, the rule states:
- Rule 575 Disruptive Practices Prohibited
All orders must be entered for the purpose of executing bona fide transactions. Additionally, all non-actional messages must be entered in good faith for legitimate purposes.
A. No person shall enter or cause to be entered an order with the intent, at the time of order entry, to cancel the order before execution or to modify the order to avoid execution.
In accordance with the settlement offer, the Panel ordered Han to pay a $10,000 fine and suspended Han from all direct and indirect access to any designated contract market, derivatives clearing organization, or swap execution facility owned or controlled by CME Group Inc. for 25 business days.
The suspension began on March 8, 2021, and will continue through April 9, 2021.