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.
Pursuant to an offer of settlement Han Lin (“Lin”) presented at a hearing on November 23, 2015, in which Lin 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 Lin pursuant to Exchange Rules 402 and 418, and that at the close of business on November 26, 2014, Lin held a futures equivalent position of 1,274 short December 2014 Copper Futures (“DEC14 Copper”) contracts, which was 874 contracts (218.50%) over the standard expiration month limit in effect for trade dates November 26 and November 28, 2014. On November 28, 2014, Lin liquidated his overage position, resulting in profits of $2,938,545.
The Panel found that as a result, Lin violated Rule 562.
In accordance with the settlement offer, the Panel ordered Lin to pay a fine to the Exchange in the amount of $65,000 and disgorge profits in the amount of $2,938,545.
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