The International Derivatives Market The CME Group has published a notice of disciplinary action against Aaron Dao Chang Pang.
The Chief Regulatory Officer of the Market Regulation Department of the CME Group charged Aaron Dao Chang Pang with violating Rules 432.B.1., 432.C. and 432.I., based on the following allegations.
From at least July 2018, until November 2019, Pang made false representations to 3 Crowns Capital Pte. Ltd. application in the CME Group International Incentive Program (“IIP”). Specifically, Pang misrepresented 3 Crowns as a proprietary trading company in order to participate in the IIP and receive reduced trading fees in the Silver futures markets. As a result, 3 Crowns received a reduction in transaction fees in the amount of $3,398,251.18.
A COMEX Business Conduct Commission (“BCC”) Hearing Panel Chair found Pang 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 Pang to pay a penalty of $250,000 in connection with this case and companion case NYMEX 19-1122-BC ($100,000 allocated to COMEX), for serve a permanent suspension from direct access to any trading venue owned or controlled by CME Group and from direct and indirect access to any designated contract market, derivatives clearing house or exchange execution facility owned or controlled by CME Group, and be restricted permanently by having a business relationship with, working for or having a financial or beneficial interest in a member or broker association.
The panel also ordered that Pang and 3 Crowns Capital be jointly and severally liable for disgorgement in the amount of $3,398,251.18.