• NOTICE OF DISCIPLINARY ACTION

      • #
      • NYMEX-10-07516-BC
      • Effective Date
      • 23 March 2012
    • FILE NO.:

      NYMEX 10-07516-BC


      NON MEMBER:

      Man Investments Ltd.

       

      EXCHANGE RULE:

      443. POSITION LIMIT VIOLATIONS

      The Market Regulation Department and the BCC shall have the authority to enforce the position limit rules of the Exchange. For purposes of this rule, any positions in excess of those permitted under the rules of the Exchange shall be deemed position limit violations.

       

      443.C. REFERRAL TO THE PROBABLE CAUSE COMMITTEE

      Additionally, notwithstanding Sections A. and B. of this rule, the Market Regulation Department, in its sole discretion, may refer any position limit violation it deems egregious to the PCC for consideration of the issuance of charges.

       

      FINDINGS:

      Pursuant to an offer of settlement that Man Investments Ltd. (“Man”) presented at a hearing on March 21, 2012, in which Man neither admitted nor denied the rule violation upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“BCC”) found that Man voluntarily submitted itself to the jurisdiction of the BCC for purposes of settling this matter, and that on November 20, 2009, a date subject to the 1,000 contract expiration month position limit for the expiring December 2009 Natural Gas Futures (“DEC09 NatGas”) contract, Man maintained a short DEC09 NatGas position of 4,455 contracts, 3,455 contracts (345.5%) in excess of the applicable speculative spot month position limit.

       

      The Panel found that as a result Man violated NYMEX Rule 443.

       

      PENALTY:

      In accordance with the settlement offer, the Panel ordered Man to pay a fine to the Exchange in the amount of $70,000

       

      EFFECTIVE DATE:

      March 23, 2012