• NOTICE OF DISCIPLINARY ACTION

      • #
      • NYMEX 16-0394-BC
      • Effective Date
      • 22 July 2016
    • MEMBER:

      INTL FCSTONE FINANCIAL, INC.

      NYMEX RULE VIOLATION: 716. DUTIES OF CLEARING MEMBERS

      Prior to the last day of trading in a physically delivered contract, each clearing member shall be responsible for assessing the account owner’s ability to make or take delivery for each account on its books with open positions in the expiring contract. Absent satisfactory information from the account owner, the clearing member is responsible for ensuring that the open positions are
      liquidated in an orderly manner prior to the expiration of trading.

      FINDINGS:

      Pursuant to an offer of settlement INTL FCStone Financial Inc. (“FCStone”) presented at a hearing on July 20, 2016, in which FCStone 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 FCStone pursuant to Exchange Rules 400 and 402 as the conduct occurred while FCStone was a NYMEX member and that on February 29, 2016, the last day for the physically settled March 2016 RBOB Gasoline Futures contract (“MAR16 RB”), FCStone carried a position of one long contract for one of its customer through the expiration of trading in MAR16 RB. FCStone did not ensure that the customer’s position was liquidated prior to the expiration of trading, as required under NYMEX Rule 716.

      The Panel found that as a result, FCStone violated Rule 716.

      PENALTY:

      In accordance with the settlement offer, the Panel ordered FCStone to pay a fine to the Exchange in the amount of $15,000.