• NOTICE OF DISCIPLINARY ACTION

      • #
      • NYMEX 15-0087-BC-6
      • Effective Date
      • 22 July 2016
    • NON-MEMBER:

      BGC RADIX ENERGY LP

      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 BGC Radix Energy LP (“BGC”) presented at a hearing on July 20, 2016, in which BGC 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 BGC pursuant to Rules 402 and 418, and that on August 27, 2014, BGC, in its capacity as a broker, executed EFRP transactions 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 BGC’s conduct, the counterparties entered into EFRP transactions that violated Rule 538.C.

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

      PENALTY:

      In accordance with the settlement offer, the Panel ordered BGC to pay a fine to the Exchange in the amount of $20,000.