The international derivatives market CME Group issued a notice of disciplinary measures against Park Jae Yeol.
On December 11, 2023, the Chief Regulatory Officer of CME Group’s Market Regulation Department filed charges against Park Jae Yeol for violating COMEX Rules 432.L.2, 575.B and 576 based on allegations that on several occasions between October 21, 2020 , and on December 14, 2020, the authorized trader for Park’s account entered actionable messages on various COMEX Copper futures contracts with the intent to mislead other market participants and obtain favorable prices.
Park’s agent presented a pattern of entering and modifying orders that alternated between creating buy-side pressure and sell-side pressure in order to induce market participants to trade the smaller amount of rest on the opposite side of the market. The imbalance prompted market participants to trade his orders for smaller quantities that he entered or modified on the opposite side of the market. Similarly, if a market participant improved the bid or offer after being misled by the market imbalance it created, Park’s agent aggressively trades the improved price.
In addition, Park allowed his agent to enter orders using an operator ID other than his own and failed to fully answer all questions in connection with Market Regulation’s investigation.
On June 4, 2024, a Chairman of the COMEX Business Conduct Committee (“BCC”) first found that Park, since he did not submit a written response to the charges against him, was deemed to have admitted to the charges. Accordingly, Park waived his right to a hearing on the merits of the charges. Under Rule 408.F. of COMEX, a BCC panel found Park guilty of committing the accepted charges and held a disciplinary hearing thereafter.
Based on the record and the panel’s findings and conclusions, the panel ordered Park to pay a total fine of $100,000 and be permanently barred from accessing any trading venue owned or controlled by CME Group and from direct and indirect access to any designated contract market, derivatives clearing house or swap execution facility owned or controlled by CME Group;
The effective date of the disciplinary notice is June 24, 2024.