• NOTICE OF DISCIPLINARY ACTION

      • #
      • NYMEX 17-0657-BC
      • Effective Date
      • 24 July 2017
    • NON-MEMBER:

      ROW Asset Management, LLC

      NYMEX RULE VIOLATION: 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 ROW Asset Management, LLC (“ROW”) presented at a hearing on July 20, 2017, in which ROW neither admitted nor denied the findings or the rule violation upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“BCC”) found that at the close of business on February 21, 2017, as a result of the delta on ROW’s March 2017 Natural Gas (“MAR17 NG”) options, ROW held a futures equivalent position of 1,053 MAR17 NG contracts which was 53 contracts (5.30%) over the 1,000 lot standard expiration month limit in MAR17 NG, in effect as of the close of business that same day. On February 22, 2017, as a result of a change in the delta on ROW’s MAR17 NG options, ROW accrued a futures equivalent position of 1,181 MAR17 NG contracts, which was 181 contracts (18.10%) over the above-referenced standard expiration month limit. ROW subsequently liquidated its overage position, resulting in profits of $52,700.

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

      PENALTY:

      In accordance with the settlement offer, the Panel ordered ROW to pay a fine to the Exchange in the amount of $35,000 and to disgorge profits in the amount of $52,700.