JON KRUG (KRUG)
COMEX RULE VIOLATIONS:
Legacy COMEX Rule 104.21 – OPEN OUTCRY
Except to the extent otherwise permitted by the By-Laws and Rules, every order to buy and sell, and every purchase and sale of, a futures contract or futures option must be offered or executed openly and competitively by public outcry in a ring specified in the By-Laws and Rules.
NYMEX RULE VIOLATION:
Legacy NYMEX Rule 8.55 – CLASSIFICIATION OF OFFENSES
(A) Major Offenses – No Member, Member Firm, or any employee of the foregoing shall commit a violation of any of the following rules, which shall be deemed major offenses of the Exchange.
(18) to commit an act which is substantially detrimental to the interests or welfare of the Exchange.
Pursuant to an offer of settlement in which Jon Krug (“Krug”) neither admitted nor denied the rule violations upon which the penalty is based for purposes of resolving this matter, on July 28, 2011, a panel of the COMEX Business Conduct Committee (the “Panel”) found that on October 27, 2008, Krug engaged in a noncompetitive trade of COMEX Silver options opposite another trader.
The Panel found that in so doing, Krug violated Legacy COMEX Rules 104.21, and Legacy NYMEX Rule 8.55(A)(18).
In accordance with the settlement offer, the Panel ordered Krug to pay a fine to the Exchange in the amount of $20,000.
August 1, 2011
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