International derivatives marketplace CME Group has posted a notice of disciplinary action against Chunyu Mao.
Pursuant to an offer of settlement in which Chunyu Mao neither admitted nor denied the alleged rule violations, a Panel of the Chicago Mercantile Exchange (CME) Business Conduct Committee found that from March 8, 2020, through July 17, 2022, Mao used an automated trading system (ATS) to enter orders to be executed at a later date and time.
On multiple occasions during the review period, Mao’s orders aggressively traded through numerous price levels and caused disruptive price movements and reversions in several CME Eurodollar, Currency, and Livestock futures markets.
The Panel further found that Mao failed to monitor the execution of his orders and failed to consider current market conditions prior to allowing the ATS to place the orders.
The Panel concluded that as a result of the foregoing, Mao violated CME Rules 575.D. and 432.W.
In accordance with the settlement offer, the Panel ordered Mao to pay a fine of $20,000 and serve a 30-business day suspension 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. The suspension will begin on the effective date (February 29, 2024) and continue for 30-trading days from the date that the ordered fine is paid.
