• NOTICE OF DISCIPLINARY ACTION

      • #
      • NYMEX 17-0715-BC-1
      • Effective Date
      • 22 December 2017
    • NON-MEMBER:

      JAMES GALLO

      NYMEX RULE VIOLATION: 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 James Gallo and Typhon Capital Management LLC (“Typhon”), who are aggregated for position limit purposes (collectively, “Gallo/Typhon”), presented at a hearing on December 20, 2017, in which Gallo/Typhon neither admitted nor denied the rule violation upon which the penalty is based, a Panel of the New York Mercantile Exchange Business Conduct Committee (“Panel”) found that at the close of business on May 30, 2017, Gallo/Typhon held an aggregated net long position in the June 2017 Palladium (“PA”) contract of 164 contracts, which was 64 contracts (64%) over the standard position limit of 100 contracts in the June 2017 PA contract. The position limit for June 2017 PA went into effect as of the close of business on May 30, 2017. Gallo/Typhon realized a profit of $16,635.00 by reducing the excess June 2017 PA positions on May 31, 2017.

      The Panel found that as a result, Gallo/Typhon violated Rule 562.

      PENALTY:

      In accordance with the settlement offer, the Panel ordered James Gallo and Typhon to jointly and severally pay a fine to the Exchange in the amount of $25,000 and disgorge profits in the amount of $16,635.00.