FREIGHT INVESTOR SERVICES
NYMEX RULE: 432. GENERAL OFFENSES
It shall be an offense:
X. to aid or abet the commission of any offense against the Exchange.
Pursuant to an offer of settlement Freight Investor Services (“FIS”) presented at a hearing on April 26, 2016, in which FIS 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 FIS pursuant to Rules 402 and 418, and that on August 14, 2014, FIS, in its capacity as a broker, executed an EFRP transaction which did not involve the transfer of ownership of the cash commodity underlying the Exchange contract or a by-product, related product, or OTC instrument, between the counterparties. As a result of FIS’s conduct, the counterparties entered into an EFRP transaction that violated Rule 538.C.
The Panel found that as a result, FIS violated Rule 432.X.
In accordance with the settlement offer, the Panel ordered FIS to pay a fine to the Exchange in the amount of $15,000.
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