Timothy Stone agreed to pay a fine of US $15,000 and be suspended from all access to CME Group exchanges for three months to resolve a disciplinary action brought by the New York Mercantile Exchange related to purported violations of the exchange’s block trade rules. According to NYMEX, on multiple occasions from January 2014 through February 2016, Mr. Stone pre-hedged orders for block trades received from a customer prior to executing such trades opposite the customer. By doing so, Mr. Stone was able to achieve guaranteed profits for his employer, charged NYMEX. The exchange said this conduct violated its prohibition against the use of nonpublic information regarding block trades.
Separately, Sunrise Brokers LLP consented to pay a fine of US $90,000 to the Commodity Exchange, Inc. to resolve allegations that, in connection with block trades from November 2017 through November 2018, it submitted inaccurate execution times and failed to report such trades within required time frames
Finally, Hongchae Chung agreed to pay a fine of US $90,000 and disgorge profits of US $19,018 to NYMEX and COMEX related to purported spoofing trades between August 2017 and March 2018. Unrelatedly, Jitender Sharma consented to be permanently barred from access to all CME Group exchanges in connection with purported spoofing on the COMEX from October 12 through October 19, 2017.