FRERE HALL CAPITAL MANAGEMENT LLP
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.
Pursuant to an offer of settlement Frere Hall Capital Management LLP (“Frere”) presented at a hearing on March 29, 2017, in which Frere neither admitted nor denied the rule violation upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“BCC”) found that on September 16, 2016, Frere opened the trading day holding a futures equivalent position of 3,831 short October 2016 Crude (“OCT16 CL”) contracts which exceeded the 3,000 lot standard expiration month limit by 831 contracts or 27.7% and later reached an intraday high position of 4,335 short OCT16 CL contracts, which was 1,335 contracts or 44.5% above the position limit that was in effect at the close of business on September 15, 2016 through September 20, 2016.
The Panel found that as a result, Frere violated Rule 562.
In accordance with the settlement offer, the Panel ordered Frere to pay a fine to the Exchange in the amount of $25,000.
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