EXCHANGE RULE: NYMEX RULE 575.D. DISRUPTIVE PRACTICES PROHIBITED
No person shall enter or cause to be entered an actionable or non-actionable
message with intent to disrupt, or with reckless disregard for the adverse
impact on, the orderly conduct of trading or the fair execution of transactions.
Pursuant to an offer of settlement Isaiah Kingston (“Kingston”) presented at a hearing on March 29, 2017, in which Kingston neither admitted nor denied the rule violations upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“BCC”) found that, on several trade dates in June 2015 and July 2015, Kingston placed a series of large stop orders in the NY Harbor ULSD Futures (“HO”) market in close proximity to each other, which resulted, when the stop orders were triggered, in a disruptive and rapid price movement in the HO Futures market, prompting Stop Logic events.
Accordingly, the Panel found that Kingston violated NYMEX Rule 575.D. (Disruptive Trading).
In accordance with the settlement offer, the Panel ordered Kingston to pay a fine in the amount of $100,000 and to serve a six month suspension from (1) applying for membership on any CME Group Inc. Exchange; (2) access to any CME Group Inc. trading floor; and (3) direct and indirect access to all electronic trading and clearing platforms owned or controlled by CME Group Inc., including CME Globex. The suspension shall run from March 31, 2017 through September 30, 2017, inclusive.
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