CENTAURUS ENERGY MASTER FUND, LP
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 the Offer of Settlement, in which Centaurus Energy Master Fund, LP (hereinafter known as “Centaurus”), a fund operated by Centaurus Advisors LLC, neither admitted nor denied the rule violation upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“BCC”) found that Centaurus voluntarily submitted itself to the jurisdiction of the BCC for purposes of settling this matter, and that on November 24, 2010, a date subject to position limits for the expiring December 2010 Henry Hub Natural Gas Look- Alike Last Day Financial Futures (“HH”) contracts, Centaurus maintained short December 2010 HH equivalent positions in Henry Hub Natural Gas Swap Futures (NN) contracts in excess of the applicable speculative spot month position limit. On November 24, 2010, Centaurus maintained an open position in December 2010 HH of 5,005.5 short future equivalent contracts, which was 5.5 contracts (0.11%) over the Conditional Limit established for Centaurus on November 23, 2010, and resulted in profits of $4,015. This overage is the third position limit violation for Centaurus in the past 24 months.
The Panel found that in so doing Centaurus violated Rule 443.
In accordance with the settlement offer and its findings, the BCC Panel hereby orders that Centaurus: 1) pay a fine to the Exchange in the amount of $15,000; 2) pay disgorgement of profits in the amount of $4,015; and 3) Cease and desist from subsequent similar rule violations. This decision became final on January 6, 2011 and effective on January 10, 2011.
January 10, 2011
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