562. POSITION LIMIT VIOLATIONS
Any positions in excess of those permitted under the rules of the Exchange shall be deemed position limit violations.
Pursuant to an offer of settlement Glencore Ltd (“Glencore”) presented at a hearing on July 31, 2013, in which Glencore neither admitted nor denied the rule violation upon which the penalty is based, a Panel of the COMEX Business Conduct Committee (“BCC”) found that it had jurisdiction over Glencore pursuant to Exchange Rules 400 and 402 as the conduct occurred while Glencore was a COMEX member and that at the close of business on trade date November 29, 2012, Glencore held a position of 3,130 short contracts in the DEC12 Copper contract which was 36.1% over its Exchange approved expiration month hedge exemption level of 2,300 short contracts. Glencore subsequently liquidated its overage position resulting in profits of $66,200.
The Panel found that as a result, Glencore violated Rule 562.
In accordance with the settlement offer, the Panel ordered Glencore to pay a fine to the Exchange in the amount of $25,000 and to disgorge profits in the amount of $66,200.
August 2, 2013
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