EXCHANGE RULE 526. BLOCK TRADES
The Exchange shall designate the products in which block trades shall be permitted and determine the minimum quantity thresholds for such transactions. The following shall govern block trades:
F. The seller must ensure that each block trade is reported to the Exchange within five minutes of the time of execution. The report must include the contract, contract month, price, quantity of the transaction, the respective clearing members, the time of execution, and, for options, strike price, put or call and expiration month. The Exchange shall promptly publish such information separately from the reports of transactions in the regular market.
NYMEX/COMEX MARKET REGULATION ADVISORY NOTICE RA 1205-4
6. Block Trade Price Reporting Requirements
b) Reporting Obligation
The failure to submit timely, accurate and complete block trade reports may subject the party responsible for the reporting obligation to disciplinary action.
Pursuant to an offer of settlement that Jefferies LLC (“Jefferies”), formerly known as Jefferies Bache LLC, presented at a hearing on April 15, 2015, in which Jefferies neither admitted nor denied the rule violations upon which the penalty is based, a Panel of the COMEX Business Conduct Committee (“Panel”) found that Jefferies was subject to the jurisdiction of the BCC pursuant to Exchanges Rules 400 and 402 as a COMEX member, and that on November 29, 2012, Jefferies executed a block trade that was not reported to the Exchange within the applicable time limit following execution and misreported two spread transactions as four outright transactions. The Panel also found that on July 8, 2013, Jefferies executed a block trade that was not reported to the Exchange within the applicable time limit following execution.
The Panel concluded that Jefferies violated Rule 526.F. (“Block Trades”).
In accordance with the settlement offer, the Panel ordered Jefferies to pay a fine to the Exchange in the amount of $22,500.
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