The international derivatives market CME Group has published a notice of disciplinary measures against Jeong Taewon.
The Chief Regulatory Officer of CME Group’s Market Regulation Department filed a charge against Jeong Taewon for violation of Regulation 534. based on allegations that, from July 19, 2022 to September 27, 2022, Jeong knowingly placed buy and sell orders in the same product and expiration month, where he knew or reasonably should have known that the purpose of the orders was to avoid taking a good market position exposed to market risk in the September 2022 E-mini S&P Options market.
On May 15, 2024, a Chairman of the CME’s Business Conduct Committee (BCC) Hearing Panel initially found that Jeong, after failing to file a written response to the charges against him, was deemed to have admitted the charges. Accordingly, Jeong waived his right to a hearing on the merits of the charges. Pursuant to Rule 408.F., a BCC panel subsequently found Jeong guilty of committing the admitted charge and held a penalty hearing thereafter.
Based on the record and the panel’s findings and conclusions, the panel ordered Jeong to pay a fine of $50,000 and serve a three-year suspension from 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 swap execution facility owned or controlled by CME Group.
The suspension will begin on May 31, 2024 and will continue for three years from the date the fine is paid.