International derivatives marketplace CME Group has posted a notice of disciplinary action against Sungbeon Kang.
The Chief Regulatory Officer of CME Group’s Market Regulation Department issued charges against Sungbeon Kang for 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 noncompetitively executed numerous transactions in CME E-Mini S&P Options, British Pound Options, Japanese Yen Options, and Australian Dollar Options markets opposite another trader.
In addition, Kang failed to appear before Exchange staff for a scheduled interview.
A Hearing Panel Chair of the CME Business Conduct Committee (BCC) determined that Kang, having failed to submit a written answer to the charges issued against him, was deemed to have admitted the charges. Kang therefore waived his right to a hearing on the merits of the charges.
Pursuant to CME Rule 408.F., a BCC Panel then found Kang 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 Kang to pay a fine in the amount of $35,000, to disgorge profits in the amount of $2,000, jointly and severally with the other trader, and to be permanently barred from access to any trading floor owned or controlled by CME Group and from direct and indirect access to any designated contract market, derivatives clearing organization or swap execution facility owned or controlled by CME Group.
