CME Group Issues Disciplinary Action Against Trader Lee Sung Ok

CME Group, a leading international derivatives marketplace, has taken decisive disciplinary action against trader Lee Sung Ok for serious violations of trading rules.

The Chief Regulatory Officer has charged Lee Sung Ok with breaching Chicago Board of Trade (CBOT) Rules 575.B. and 432.L.2. The charges stem from allegations that between June 18, 2021, and September 28, 2021, Lee engaged in manipulative trading practices across various futures markets including Soybean Oil, Corn, Soybean Meal, and Wheat. Specifically, Lee is accused of placing deceptive orders, known as layering, which were intended to mislead other market participants and obtain favorable pricing.

The disciplinary action outlines that Lee systematically entered and modified orders to create an unbalanced quantity of contracts on one side of the market, thereby inducing other traders to execute transactions that benefited her positions. This strategy alternated between creating buy-side and sell-side pressures, aimed at manipulating market perceptions and trading behaviors.

Additionally, the Panel found Lee Sung Ok failed to fully cooperate with Market Regulation’s investigation, further complicating the disciplinary proceedings.

After Lee failed to respond to the charges in writing, the CBOT Business Conduct Committee (BCC) deemed her admission of guilt, waiving her right to a formal hearing on the matter. Pursuant to CBOT Rule 408.F., the BCC Panel subsequently found Lee guilty of the charges and convened a penalty hearing.

Following a thorough review of the evidence and deliberations, the Panel has imposed significant sanctions against Lee. She has been ordered to pay a fine of $100,000, with $50,000 allocated to CBOT. Moreover, Lee has been permanently suspended from directly accessing any trading floor owned or controlled by CME Group, as well as from any designated contract market, derivatives clearing organization, or swap execution facility under CME Group’s purview, effective from August 5, 2024.

This disciplinary action underscores CME Group’s commitment to maintaining integrity and fairness within the derivatives markets under its supervision, ensuring compliance with regulatory standards and ethical trading practices.