The Korea Herald


CME sanctions Hana Financial Investment's derivatives trading

By Son Ji-hyoung

Published : May 23, 2018 - 15:02

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US exchange operator CME Group has immediately suspended South Korea’s brokerage Hana Financial Investment‘s access to electronic trading or clearing platforms and markets run by the US derivatives exchange operator.

Following the disciplinary action effective starting Tuesday, customers of the Korean securities firm are being banned from trading futures or options on CME Group’s platforms including Globex, using Hana‘s home trading system.

The access will be denied for 60 days, until July 20. The period of suspension is subject to extension.

Open positions at Hana’s clearing firms may be liquidated upon request by the brokerage or its customers. 

(Yonhap) (Yonhap)

The operator of the world‘s biggest derivatives markets including Chicago Mercantile Exchange said Hana misinformed CME Group’s department of market regulation of account ownership, authorized traders for accounts, audit trail data, and account statements, during CME‘s investigation on some 100 Hana’s customer accounts since May 2017.

“Hana’s actions substantially obstructed several Market Regulation investigations related to spoofing, disruptive trading, and money pass activity in various exchange products,” read the statement Tuesday by CME.

Hana Financial Investment said it was not able to respond to CME Group’s request for customer information because some did not earn customers‘ consent to a third party‘s use. It vowed to help its customers liquidate open position and compensate for financial loss the suspension incurred.

By Son Ji-hyoung