• NOTICE OF DISCIPLINARY ACTION

      • #
      • NYMEX 15-0320-BC-2
      • Effective Date
      • 06 December 2017
    • NON-MEMBER:

      Daire McGeown

      EXCHANGE RULES: Rule 534. – Wash Trades Prohibited

      No person shall place or accept buy and sell orders in the same product and expiration month, and, for a put or call option, the same strike price, where the person knows or reasonably should know that the purpose of the orders is to avoid taking a bona fide market position exposed to market risk (transactions commonly known or referred to as wash sales). Buy and sell orders for different accounts with common beneficial ownership that are entered with the intent to negate market risk or price competition shall also be deemed to violate the prohibition of wash trades. Additionally, no person shall knowingly execute or accommodate the execution of such orders by direct or indirect means.

      FINDINGS:

      Pursuant to an offer of settlement that Daire McGeown (“McGeown”) presented at a hearing on December 4, 2017, in which McGeown neither admitted nor denied the findings or the rule violation upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that between November 26, 2014 and September 29, 2015, McGeown entered orders in various NYMEX futures products for different accounts wholly owned and controlled by his employer which he knew or should have known would match with each other.

      The Panel found that as a result of the foregoing, McGeown violated NYMEX Rule 534.

      PENALTY:

      In accordance with the settlement offer, the Panel: 1) ordered McGeown to pay a total fine to the Exchange in the amount of $10,000, in connection with this case and companion case COMEX 15-0320-BC ($5,000 of which is allocated to NYMEX); and 2) suspended McGeown’s access to any CME Group trading floor, and direct or indirect access to any CME Group electronic trading or clearing platform, for 5 business days, beginning on the effective date below. The suspension will run from December 6, 2017 through December 12, 2017.