Nadex bans trader for engaging in manipulative scheme

North American Derivatives Exchange, Inc. (Nadex), which will soon have a new owner, has banned Liang Zheng for engaging in manipulative scheme to defraud Nadex Markets.

On August 7, 2019, the Compliance Department sent Liang Zheng an Account Inquiry Letter requesting, among other things, general background information, source of funds information and details regarding her order and trading activity.

The Compliance Department acknowledges that Zheng responded to certain inquiries and requests for information. However, after several follow up inquiries Zheng did not adequately respond to requests for her banking and trading activity, among other things.

The Compliance Department also found that Zheng allowed another Nadex Member to fund her Nadex account by transferring funds into her bank account which were subsequently transferred to Nadex, thus providing the other Member with a direct economic interest in the activity and trading in her Nadex account. Additionally, during the course of this investigation it became evident that Zheng funded another Nadex Member’s trading account via bank transfers, thus resulting in her having a direct economic interest in the activity and trading in the other Member’s account.

Further, Zheng provided misleading information to the Compliance Department relative to her connections with other Nadex Members and source of funding.

During the course of its investigation, the Compliance Department analyzed the order and trading activity throughout the life of Zheng’s Nadex account. Through this review, the Compliance Department discovered that Zheng engaged in or attempted to engage in a manipulative scheme to defraud Nadex markets in at least 12 binary option contracts between August 5, 2019 and August 21, 2019.

Accordingly, the Compliance Department concluded that Zheng violated Exchange Rule 5.19(k) when she provided false and/or incomplete information related to her connections with other Nadex Members and source of funding. Additionally, the Compliance Department has concluded that Zheng violated Member Acknowledgements and Authorizations, Section (h) of the Nadex Membership Agreement and Exchange Rule 3.3(a) by failing to fully cooperate with this investigation.

Additionally, Zheng violated the Nadex Membership Agreement, Member Representations Section (d), when she allowed another Nadex Member to have a direct economic interest in the activity and trading in her Nadex account. Furthermore, Nadex Compliance concluded that Zheng violated Nadex Rule 3.1(f) when she utilized another Nadex Member’s account as a second account on Nadex traded for her benefit.

Finally, Zheng’s manipulative activity was to the detriment of other market participants. Engaging or attempting to engage in conduct and practices that are manipulative and inconsistent with just and equitable principles of trade, and that pose a risk to the Exchange, its members, and/or to the public, is in contravention of Nadex Rules 5.19(h), 5.19(i), 5.19(n) and 5.19(t). Accordingly, the Compliance Department has concluded that Zheng violated Nadex Rules 5.19(h), 5.19(i), 5.19(n) and 5.19(t).

By settlement agreement, in which Liang Zheng neither admitted nor denied the findings or conclusions of the investigation, Zheng has been assessed a $2,500 fine. Additionally, Liang Zheng’s Nadex Membership has been revoked, her account terminated, and she has been permanently banned from trading on Nadex markets, either directly for her own account, through an intermediary, or as an authorized trader on behalf of any other account.

The disciplinary notice is effective from February 22, 2022.

Posted on

115 Replies to “Nadex bans trader for engaging in manipulative scheme”

  3. Agora que muitas pessoas estão usando smartphones, podemos considerar o posicionamento do telefone móvel por meio de redes sem fio ou estações base.

  7. I do not even know how I ended up here, but I thought this post was good.I do not know who you are but certainly you are going to a famous blogger if you are not already 😉 Cheers!

  8. PG SLOT สมัครสล็อต PG ทดลองเล่นฟรีที่ PGTHAIPG SLOT เว็บตรงไม่ผ่านเอเย่นต์PGTHAI.CLUBสมัครสล็อต PG

  9. You could definitely see your skills in the work you write. The world hopes for more passionate writers like you who aren’t afraid to say how they believe. Always follow your heart.

  19. fantastic publish, very informative. I ponder why the other expertsof this sector don’t realize this. You should continue your writing.I’m confident, you have a huge readers’ base already!

  20. Hi there, always i used to check blog posts here in the early hours in the morning, since i enjoy to find out more and more.

  23. Very nice post. I just stumbled upon your blog and wanted to say that I’ve truly enjoyed browsing your blog posts. After all I will be subscribing to your rss feed and I hope you write again very soon!

  24. I am not certain the place you are getting your info,but great topic. I needs to spend a while finding out more or working out more.Thanks for excellent information I was searching for this information for mymission.

  26. At this time it appears like Movable Type is the preferred blogging platform out there right now. (from what I’ve read) Is that what you’re using on your blog?

  27. Hello my family member! I wish to say that this post is awesome, nice written and include almost all significant infos. I would like to see more posts like this.

  32. I enjoy reading a post that will make men and women think. Also, thank you for allowing for me to comment!

  35. My brother suggested I might like this blog. He was entirely right.This post truly made my day. You can not imagine just how much time I hadspent for this info! Thanks!

  36. I blog often and I genuinely thank you for your information. The article has really peaked my interest. I’m going to book mark your blog and keep checking for new details about once a week. I opted in for your RSS feed as well.

  42. Immigration lawyer Gabriela Ramo says that under대구콜걸 Canadian law, someone’s citizenship can only be revoked if it can be proven that they committed fraud or misrepresentation to obtain it.

  50. Why did you come to ? prix propecia 2013 But Alain Vigneault correctly pointed out the referees were not the reason the Rangers lost after winning Thursday night’s season opener in St

  66. Hello! I just wanted to ask if you ever have any problems with hackers?My last blog (wordpress) was hacked and I ended up losing months of hardwork due to no back up. Do you have any solutions to protect against hackers?

  74. That is a good tip particularly to those new to the blogosphere. Short but very accurate info… Many thanks for sharing this one. A must read post!

  75. Awsome post and right to the point. I am not sure if this is actually the best place to ask but do you people have any ideea where to hire some professional writers? Thanks 🙂

  79. Your way of telling everything in this piece of writing is truly good, all be capable of easily be aware of it,Thanks a lot.Here is my blog … treatments need

  82. What’s Happening i am new to this, I stumbled upon this I’ve found It positively helpful and it has aided me out loads. I hope to give a contribution & assist different users like its helped me. Good job.

  84. At this time it looks like Movable Type is thetop blogging platform available right now.(from what I’ve read) Is that what you are using on your blog?

  90. hello!,I love your writing so much! percentage we keep in touch more about your post on AOL? I need an expert in this house to solve my problem. May be that’s you! Taking a look forward to look you.

  97. I used to be recommended this blog by my cousin. I’m now not sure whether or not this publish is written by means of him as no one else know such specific about my problem. You are wonderful! Thanks!

  99. Greetings! I know this is somewhat off topic but I was wondering if you knewwhere I could locate a captcha plugin for my comment form?I’m using the same blog platform as yours and I’m having trouble findingone? Thanks a lot..!

  100. Hello There. I discovered your blog the usage of msn.This is a very neatly written article. I’ll besure to bookmark it and return to read more of your helpfulinformation. Thank you for the post. I will definitelyreturn.

  105. Hello there! I know this is kinda off topic but I was wondering if you knew where I could get a captcha plugin for my comment form?I’m using the same blog platform as yours and I’m having trouble findingone? Thanks eating healthy on a budget lot!

  106. When someone writes an post he/she retains the thought of a user in his/her mind that how a user can understand it. Thus that’s why this article is amazing. Thanks!

  113. I do trust all the concepts you’ve offered on your post. They’re really convincing and will definitely work.Still, the posts are too quick for beginners. May justyou please prolong them a bit from subsequent time?Thank you for the post.

Leave a Reply

Your email address will not be published. Required fields are marked *