• NOTICE OF DISCIPLINARY ACTION

      • #
      • NYMEX 16-0504-BC
      • Effective Date
      • 01 February 2018
    • MEMBER:

      Peter C. Miller

      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 Peter C. Miller (“Miller”) presented at a hearing on January 30, 2018, in which Miller 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 September 1, 2014 and October 31, 2016, Miller engaged in a pattern of activity in which he entered manual orders in various Natural Gas contracts without the intent to trade. Specifically, Miller first entered iceberg orders with show quantities that typically represented twenty-five percent (25%) or less of an order’s actual size, before placing fully exposed orders of equal or greater size on the opposite side of the book, in an effort to encourage market participants to trade opposite Miller’s iceberg orders. After receiving a fill on his iceberg orders, Miller would then cancel the fully-exposed orders he had entered on the opposite side of the order book.

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

      PENALTY:

      In accordance with the settlement offer, the Panel ordered Miller to pay a fine to the Exchange in the amount of $35,000. The Panel also suspended Miller from all membership privileges and direct or indirect access to any CME Group trading floor or CME Group electronic trading or clearing platform, including Globex, for 10 business days, beginning on the effective date below. The suspension will run from February 1, 2018 through February 14, 2018.