• NOTICE OF DISCIPLINARY ACTION

      • #
      • NYMEX 15-0220-BC
      • Effective Date
      • 28 March 2016
    • MEMBER:

      JEFFERIES, LLC

      NYMEX RULE: 432. GENERAL OFFENSES

      It shall be an offense:

      X. to aid or abet the commission of any offense against the Exchange.

      FINDINGS:

      Pursuant to an offer of settlement Jefferies, LLC (“Jefferies”), formerly known as Jefferies Bache, LLC, presented at a hearing on March 23, 2016, in which Jefferies neither admitted nor denied the rule violation upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“BCC”) found that it had jurisdiction over Jefferies as a former NYMEX member pursuant to Rules 400 and 402, and that on December 2, 2014, Jefferies, in its capacity as a broker, executed an EFRP transaction that was intended to be a block trade. The EFRP was non-bona fide because there was no corresponding related OTC position. As a result of Jefferies’ conduct, the counterparties entered into an EFRP transaction that violated Rule 538.C.

      The Panel found that as a result, Jefferies violated Rule 432.X.

      PENALTY:

      In accordance with the settlement offer, the Panel ordered Jefferies to pay a fine to the Exchange in the amount of $40,000.