• NOTICE OF DISCIPLINARY ACTION

      • #
      • NYMEX 16-0441-BC
      • Effective Date
      • 01 February 2018
    • NON-MEMBER:

      Marc Sonnabend

      EXCHANGE RULE:

      Rule 575.A. Disruptive Practices Prohibited

      No person shall enter or cause to be entered an order with the intent, at the time of order entry, to cancel the order before execution or to modify the order to avoid execution.

      FINDINGS:

      Pursuant to an offer of settlement that Marc Sonnabend (“Sonnabend”) presented at a hearing on January 30, 2018, in which Sonnabend 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 from January 2, 2016 through August 31, 2016, Sonnabend engaged in a pattern of activity in which he manually entered orders in various RBOB Gasoline Calendar Spreads without the intent to trade. Specifically, Sonnabend entered these orders to encourage market participants to trade opposite his smaller orders that were resting on the opposite side of the book. After receiving a fill on his resting smaller orders, Sonnabend would then immediately cancel the larger orders he had entered on the opposite side of the order book.

      The Panel found that as a result of the foregoing, Sonnabend violated NYMEX Rule 575.A.

      PENALTY:

      In accordance with the settlement offer, the Panel ordered Sonnabend to pay a fine to the Exchange in the amount of $65,000, disgorge profits in the amount of $19,003, and suspended Sonnabend’s access to any CME Group trading floor, and direct or indirect access to any CME Group electronic trading or clearing platform for six months, beginning on the effective date below. The suspension will run from February 1, 2018 through August 1, 2018.