• NOTICE OF DISCIPLINARY ACTION

      • #
      • NYMEX 16-0530-BC
      • Effective Date
      • 21 December 2016
    • MEMBER:

      QUANTRES ASSET MANAGEMENT, LTD.

      NYMEX RULE: 562. POSITION LIMIT VIOLATIONS

      Any positions in excess of those permitted under the rules of the Exchange shall be deemed position limit violations.

      FINDINGS:

      Pursuant to an offer of settlement QuantRes Asset Management, Ltd. (“QuantRes”) presented at a hearing on December 19, 2016, in which QuantRes 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 QuantRes because it was a NYMEX member and at the close of business on September 23, 2016, QuantRes held a short position of 1,384 October 2016 Henry Hub Natural Gas Futures contracts which was 384 contracts (38.4%) in excess of the standard expiration month limit that was in effect starting at the close of business on September 23, 2016 and for trade dates September 26, 27, and 28, 2016.

      The Panel found that as a result, QuantRes violated Rule 562.

      PENALTY:

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