International derivatives market CME Group has published a notice of disciplinary measures against Sungbeon Kang.
The Chief Regulatory Officer of the Market Regulation Department of the CME Group charged Sungbeon Kang with violating CME Rules 539 and 432.L1. based on allegations that on multiple occasions between August 25, 2021 and January 3, 2022, Kang prearranged and non-competitively executed numerous trades in the CME E-Mini S&P Options, British Pound Options, Japanese Yen Options and Australian Dollar markets against another trader.
In addition, Kang failed to appear before Exchange staff for a scheduled interview.
A Chairman of the CME’s Business Conduct Committee (BCC) ruled that Kang, since he did not submit a written response to the charges against him, was deemed to have admitted the charges. Accordingly, Kang waived his right to a hearing on the merits of the charges.
Under Rule 408.F. of the CME, a BCC panel subsequently found Kang guilty of committing the admitted charges and held a sanctions hearing thereafter.
Based on the record and the panel’s findings and conclusions, the panel ordered Kang to pay a fine of $35,000, disgorge $2,000 in profits, jointly and severally with the other trader, 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.