CME Group has published a notice of disciplinary action against Young Myoung Kim.
On November 16, 2020, the CME Group Chief Regulatory Officer (CRO) charged Young Myoung Kim with violating NYMEX Rules 575.A. and 576 based on allegations that Kim entered or caused to be entered an order with the intent, at the time of order entry, to cancel the order or orders before execution or to modify the order or orders to avoid execution, on one or more occasions in the Crude Oil and E-Mini Crude Oil futures markets from February 10, 2019 to May 23, 2019 using a user ID other than his own unique user ID.
On March 16, 2021, a Hearing Panel Chair of the NYMEX Business Conduct Committee (“BCC”) first determined that Kim, having failed to submit a written answer to the charges issued against him, was deemed to have admitted the charges. Kim, therefore, waived his right to a hearing on the merits of the charges. Pursuant to NYMEX Rule 408.F., a BCC Panel then found Kim guilty of committing the admitted charges and held a penalty hearing thereafter.
The rules that Kim violated state:
- NYMEX RULE 575. DISRUPTIVE PRACTICES PROHIBITED (in part)
All orders must be entered for the purpose of executing bona fide transactions. Additionally, all non-actionable 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.
- NYMEX RULE 576. IDENTIFICATION OF GLOBEX TERMINAL OPERATORS
Each Globex terminal operator shall be identified to the Exchange, in the manner prescribed by the Exchange, and shall be subject to Exchange rules. If user IDs are required to be registered with the Exchange, it is the duty of the clearing member to ensure that registration is current and accurate at all times. Each individual must use a unique user ID to access Globex. In no event may a person enter an order or permit the entry of an order by an individual using a user ID other than the individual’s own unique user ID.
Based on the record and the Panel’s findings and conclusions, the Panel ordered Kim to pay a fine in the amount of $50,000 and serve a five year 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 from April 7, 2021 through April 7, 2026, inclusive.