NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

FORTUNE COMMODITIES DMCC

EXCHANGE RULES:

RULE 539. PREARRANGED, PRE-NEGOTIATED AND NONCOMPETITIVE TRADES PROHIBITED (in part)

A. General Prohibition:

No person shall prearrange or pre-negotiate any purchase or sale or noncompetitively execute any transaction.

RULE 433. STRICT LIABILITY FOR THE ACTS OF AGENTS

Pursuant to Section 2(a)(1)(B) of the Commodity Exchange Act, and notwithstanding Rule 432.W., the act, omission, or failure of any official, agent, or other person acting for any party within the scope of his employment or office shall be deemed the act, omission or failure of the party, as well as of the official, agent or other person who committed the act.

FINDINGS:

Pursuant to an offer of settlement in which Fortune Commodities DMCC (“Fortune”) neither admitted nor denied the factual findings or rule violations upon which the penalty is based, on July 26, 2023, a Panel of the COMEX Business Conduct Committee (“Panel”) found that, on multiple occasions between July 16, 2020, and September 11, 2020, a Fortune proprietary trader with discretionary control over a Fortune account prearranged and noncompetitively executed numerous transactions in COMEX Gold and Silver futures markets opposite a single trader employed by another firm. As a result of these prearranged trades, Fortune profited in the amount of $38,040.

The Panel concluded that, pursuant to Rule 433, Fortune was strictly liable for the acts of its employee whose conduct the Panel concluded violated Rule 539.A.

PENALTY:

In accordance with the settlement offer, the BCC ordered Fortune to disgorge profits in the amount of $38,040.