CME Group has published disciplinary notices against a number of traders who have engaged in disruptive practices and will have to pay fines and endure suspensions. The notices target: Fengqiang Wang, Yangfen Li, Wangquan Zhao, Qingquan Li, Qi Zhang, Liuyi Yang, and Li Li.
In particular, the traders violated CME Rule 575, which states:
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.
Fengqiang Wang entered or caused to be entered orders with the intent, at the time of order entry, to cancel the orders before execution or to modify the orders to avoid execution in the Australian Dollar, Japanese Yen, and British Pound futures markets from July 2, 2019 through October 31, 2019.
Wang, having failed to submit a written answer to the charge issued against him, was deemed to have admitted the charge. Wang therefore waived his right to a hearing on the merits of the charge. Pursuant to CME Rule 408.F., a BCC Panel then found Wang guilty of committing the admitted charge.
Based on the record and the Panel’s findings and conclusions, the Panel ordered Wang to pay a fine in the amount of $55,000. The Panel also suspended Wang 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. beginning on the effective date and continuing for a period of five years after the fine is paid in full.
Yangfen Li entered or caused to be entered orders with the intent, at the time of order entry, to cancel the orders before execution or to modify the orders to avoid execution in the Canadian Dollar, British Pound, and Japanese Yen futures markets from April 1, 2019 through December 10, 2019.
Li, having failed to submit a written answer to the charge issued against her, was deemed to have admitted the charge. Li therefore waived her right to a hearing on the merits of the charge. Pursuant to CME Rule 408.F., a BCC Panel then found Li guilty of committing the admitted charge.
Based on the record and the Panel’s findings and conclusions, the Panel ordered Li to pay a fine in the amount of $50,000. The Panel also suspended Li 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. beginning on the effective date and continuing for a period of five years after the fine is paid in full.
Wangquan Zhao entered or caused to be entered orders with the intent, at the time of order entry, to cancel the orders before execution or to modify the orders to avoid execution in the British Pound , Euro FX, and Japanese Yen futures markets from December 1, 2018 through December 10, 2019.
Zhao, having failed to submit a written answer to the charge issued against him, was deemed to have admitted the charge. Zhao therefore waived his right to a hearing on the merits of the charge. Pursuant to CME Rule 408.F., a BCC Panel then found Zhao guilty of committing the admitted charge.
The Panel ordered Zhao to pay a fine in the amount of $30,000. The Panel also suspended Zhao 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. beginning on the effective date below and continuing for a period of five years after the fine is paid in full.
Qingquan Li entered or caused to be entered orders with the intent, at the time of order entry, to cancel the orders before execution or to modify the orders to avoid execution in the Japanese Yen, Canadian Dollar, and British Pound futures markets from October 4, 2018 through March 29, 2019.
Li, having failed to submit a written answer to the charge issued against him, was deemed to have admitted the charge. Li therefore waived his right to a hearing on the merits of the charge. Pursuant to CME Rule 408.F., a BCC Panel then found Li guilty of committing the admitted charge.
The Panel ordered Li to pay a fine in the amount of $50,000. The Panel also suspended Li 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. beginning on the effective date and continuing for a period of five years after the fine is paid in full.
Qi Zhang entered or caused to be entered orders with the intent, at the time of order entry, to cancel the orders before execution or to modify the orders to avoid execution in the Japanese Yen, British Pound, and Euro FX futures markets from March 12, 2019 through December 10, 2019.
Zhang, having failed to submit a written answer to the charge issued against him, was deemed to have admitted the charge. Zhang therefore waived his right to a hearing on the merits of the charge. Pursuant to CME Rule 408.F., a BCC Panel then found Zhang guilty of committing the admitted charge.
The Panel ordered Zhang to pay a fine in the amount of $40,000. The Panel also suspended Zhang 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. beginning on the effective date and continuing for a period of five years after the fine is paid in full.
Liuyi Yang entered or caused to be entered orders with the intent, at the time of order entry, to cancel the orders before execution or to modify the orders to avoid execution in the British Pound , Euro FX, and Japanese Yen futures markets from December 1, 2018 through December 10, 2019.
Yang, having failed to submit a written answer to the charge issued against him, was deemed to have admitted the charge. Yang therefore waived his right to a hearing on the merits of the charge. Pursuant to CME Rule 408.F., a BCC Panel then found Yang guilty of committing the admitted charge.
The Panel ordered Yang to pay a fine in the amount of $30,000. The Panel also suspended Yang 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. beginning on the effective date and continuing for a period of five years after the fine is paid in full.
Li Li entered or caused to be entered orders with the intent, at the time of order entry, to cancel the orders before execution or to modify the orders to avoid execution in the British Pound and Euro FX futures markets from December 1, 2018 through December 10, 2019.
Li, having failed to submit a written answer to the charge issued against him, was deemed to have admitted the charge. Li therefore waived his right to a hearing on the merits of the charge. Pursuant to CME Rule 408.F., a BCC Panel then found Li guilty of committing the admitted charge.
Based on the record and the Panel’s findings and conclusions, the Panel ordered Li to pay a fine in the amount of $30,000. The Panel also suspended Li 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. beginning on the effective date and continuing for a period of five years after the fine is paid in full.
The effective date of all disciplinary notices is July 9, 2021.