TRAFIGURA DERIVATIVES 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. 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 in which Trafigura Derivatives Ltd. (“Trafigura”) neither admitted nor denied the findings or any rule violations, a panel of the NYMEX Business Conduct Committee (“BCC Panel”) found that on October 25, 2010, Trafigura voluntarily submitted itself to the jurisdiction of the BCC Panel for the sole purpose of settling this matter. The BCC panel further found that, on November 18 and 19, 2009, dates subject to position limits for the expiring December 2009 Crude Oil futures (“CL”) contract, Trafigura maintained long December 2009 CL positions in excess of the applicable speculative spot month position limit of long 1,794 contracts, and long 1,622 contracts, respectively. Trafigura’s December 2009 CL positions on November 18 and 19, 2009 also exceeded the firm’s 2009 hedge exemption limit for CL by 794 and 622 contracts, respectively.
The Panel found that in so doing Trafigura violated Rule 443; Position Limit Violations.
In accordance with the settlement offer and its findings, the BCC Panel ordered that Trafigura pay a fine to the Exchange in the amount of $25,000. This decision became final on October 25, 2010 and effective on October 27, 2010.
October 27, 2010
CME Group is the world's leading and most diverse derivatives marketplace. The company is comprised of four Designated Contract Markets (DCMs). Further information on each exchange's rules and product listings can be found by clicking on the links to CME, CBOT, NYMEX and COMEX.