GOLDFINCH CAPITAL MANAGEMENT, LP
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. Additionally, any person making a bid or offer that would, if accepted, cause such person to exceed the applicable position limits shall be in violation of this rule….
Pursuant to an offer of settlement Goldfinch Capital Management, LP (“Goldfinch”) presented at a hearing on March 9, 2011, in which Goldfinch neither admitted nor denied the rule violation upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“BCC Panel”) found that Goldfinch voluntarily submitted itself to the jurisdiction of the Business Conduct Committee for purposes of settling this matter, and that on November 23, 2010, a date subject to position limits for the expiring December 2010 Natural Gas Futures (“NGZ0”) contracts, Goldfinch maintained a short NGZ0 position in excess of the applicable speculative spot month position limit. The BCC Panel further found that, on November 23, 2010, Goldfinch sold NGZ0 futures contracts and extended its short position to 1,053 contracts, 53 contracts (5.3%) over the expiring speculative spot month position limit, before buying NGZ0 futures contracts and reducing the position back under the limit. This round- turn, 53-lot NGZ0 trade resulted in profits in the amount of $17,287. This overage is the third position limit violation for Goldfinch in the past 24 months.
The BCC Panel found that in so doing, Goldfinch violated NYMEX Rule 443.
In accordance with the settlement offer and its findings, the BCC Panel ordered that Goldfinch: (1) pay a fine to the Exchange in the amount of $50,000; (2) pay disgorgement in the amount of $17,287; and (3) Cease and desist from subsequent similar rule violations. This decision became final on March 11, 2011, and effective on March 15, 2011.
March 15, 2011
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