• NOTICE OF DISCIPLINARY ACTION

      • #
      • NYMEX 16-0434-BC-1
      • Effective Date
      • 01 September 2017
    • NON-MEMBER:

      JAYPEE SINGAPORE PTE LTD

      EXCHANGE RULE: 432.W. GENERAL OFFENSES (in part)

      It shall be an offense:

      W. for a Member to fail to diligently supervise its employees and agents in the conduct of their business relating to the Exchange.

      FINDINGS:

      Pursuant to an offer of settlement that Jaypee Singapore PTE Ltd. (“Jaypee”) presented at a hearing on August 30, 2017, in which Jaypee neither admitted nor denied the rule violation upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that, on several trade dates during the time period from December 2015 through April 2016, two traders then employed by Jaypee (the “traders”) entered multiple large orders in the Natural Gas Futures contract market without the intent to trade, but rather, to encourage market participants to trade opposite the smaller orders entered by the traders that were resting on the opposite side of the order book. After receiving a fill on the smaller orders, the large orders were cancelled by the traders. Jaypee failed to provide instruction or guidance to its traders on Exchange rules and regulations, specifically with regard to disruptive trading, as well as failed to supervise the trading activities of its traders to ensure compliance with Exchange rules.

      The Panel concluded that Jaypee violated Exchange Rule 432.W.

      PENALTY:

      In accordance with the settlement offer, the Panel fined Jaypee $55,000 in connection with this case and companion case COMEX 16-0434-BC ($20,000 of which is allocated to NYMEX).