NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

VIVEK JAIN 

EXCHANGE RULE: Rule 575.A. (DISRUPTIVE PRACTICES PROHIBITED)

All orders must be entered for the purpose of executing bona fide transactions. Additionally, all non-actionable messages must be entered in good faith for legitimate purposes.

A. No person shall enter or cause to be entered an order with the intent, at the time of order entry, to cancel the order before execution or to modify the order to avoid execution.

FINDINGS:

Pursuant to an offer of settlement Vivek Jain (“Jain”) presented at a hearing on July 20, 2017, in which Jain neither admitted nor denied the rule violations upon which the penalty is based, a Panel of the COMEX Business Conduct Committee (“BCC Panel”) found that on multiple trade dates from January 2015 to June 2015, Jain engaged in a pattern of activity in which he entered multiple layered orders in the Gold futures contracts with the intent, at the time of order entry, to cancel the orders before execution. Specifically, Jain entered multiple layered orders to encourage market participants to trade opposite his smaller order resting on the opposite side of the market or to encourage other market participants to better his bid/offer in order to trade against those bettered bids or offers. After receiving a fill on the smaller order, Jain would cancel the layered orders he had entered on the opposite side of the book.

The Panel found that as a result of the foregoing, Jain violated Rule 575.A.

PENALTY:

In accordance with the settlement offer, the Panel ordered Jain to: 1) pay a $25,000 fine; and 2) serve a twenty (20) business day suspension of any access to any CME Group Inc. trading floor and of direct and indirect access to all electronic trading and clearing platforms owned or controlled by CME Group Inc., including CME Globex. The suspension shall run from July 24, 2017 through August 18, 2017, inclusive.