NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

NIKITA KARTASHEV

COMEX RULE:

RULE 432. GENERAL OFFENSES (IN PART)

It shall be an offense:

G. To prearrange the execution of transactions in Exchange products for the purpose of transferring equity between accounts.

FINDINGS:

On March 6, 2021, the CME Group Chief Regulatory Officer charged Nikita Kartashev with violating COMEX Rule 432.G. based on allegations that, between February 28, 2020, and March 5, 2020, Kartashev prearranged the execution of round-turn transactions in various options on Silver futures between Kartashev’s personal account and his employer’s account for the purpose of transferring equity to his personal account.

On October 19, 2021, a Hearing Panel Chair of the COMEX Business Conduct Committee (“BCC”) first determined that Kartashev, having failed to submit a written answer to the charge issued against him, was deemed to have admitted the charge. Kartashev therefore waived his right to a hearing on the merits of the charge. Pursuant to COMEX Rule 408.F., a BCC Panel then found Kartashev guilty of committing the admitted charge and held a penalty hearing thereafter.

PENALTY:

Based on the record and the Panel’s findings and conclusions, the Panel ordered Kartashev, who has made full restitution to his employer, to pay a fine in the amount of $60,000 and serve a three-year 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.