CME Group has issued a disciplinary notice as to Tujun Hong, who is suspended and fined over violations of NYMEX rules.

Hong allegedly violated the following NYMEX rules:

• Rule 533. Simultaneous Buy & Sell Orders For Different Beneficial Owners
• Rule 534. Wash Trades Prohibited
• Rule 576. Identification of Globex Terminal Operators

The CME Group Chief Regulatory Officer charged Tujun Hong with violating NYMEX Rules 533, 534, and 576 based on allegations that, between November 22, 2019 and January 2, 2020, Hong, using his own, as well as others, Tag 50 User IDs, executed numerous trades in the Crude Oil futures market between accounts owned by Hong.

The Panel also found that on December 2, 2019, Hong entered opposite orders on CME Globex for different beneficial owners in the Crude Oil futures market without first exposing one of the orders to the market for a minimum of five seconds.

A Hearing Panel Chair of the NYMEX Business Conduct Committee (BCC) first determined that Hong, having failed to submit a written answer to the charges issued against him, was deemed to have admitted the charges. Hong, therefore, waived his right to a hearing on the merits of the charges. Pursuant to NYMEX Rule 408.F., a BCC Panel then found Hong 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 Hong to pay a fine in the amount of $85,000 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 effective date of the notice is September 30, 2021.