CME Group fines trader for disruptive practices in platinum futures markets
CME Group has just posted a notice of disciplinary action against Sung Joong Joo.
Joo is charged with violating NYMEX Rule 575.A., which concerns the so-called “disruptive practices”. The rule states that:
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.
On July 14, 2020, the CME Group Chief Regulatory Officer (CRO) brought charges against Joo based on allegations that between April 15, 2019 and April 18, 2019 Joo entered orders into the July 2019 Platinum Futures markets with the intent, at the time of order entry, to cancel the order before execution.
On October 21, 2020, a Hearing Panel Chair of the NYMEX Business Conduct Committee entered an order finding that Joo failed to answer the charge against him. The Hearing Panel Chair further ordered that Joo was deemed to have admitted the charge issued and waived his right to a hearing on the merits of the charge.
A penalty hearing was then held before a panel of the NYMEX BCC which found that Joo had committed the violation charged.
In accordance with NYMEX Rule 402.B (Sanctions), the BCC Panel ordered Joo to pay a monetary fine in the amount of $60,000, disgorge profits in the amount of $4,527.38. Joo will also have to serve a 20 business day trading 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 penalties are effective November 10, 2020.