CREDIT SUISSE SECURITIES (USA), LLC
562. POSITION LIMIT VIOLATIONS
Any positions in excess of those permitted under the rules of the Exchange shall be deemed position limit violations.
Pursuant to an offer of settlement Credit Suisse Securities, (USA) LLC (“Credit Suisse”), presented at a hearing on August 14, 2012, in which Credit Suisse neither admitted nor denied the rule violation upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that on trade date February 9, 2011, Credit Suisse’s affiliate, Credit Suisse Energy (“CSE”), and Credit Suisse’s foreign-based affiliate, Credit Suisse International (“CSI”), inadvertently maintained an aggregate open March 2011 Brent Crude (“MAR11 Brent Crude”) futures position in excess of the position limit in effect for trades in that product at that time. Specifically, CSI had a long position of 2,396 contracts of MAR11 Brent Crude futures and CSE had a short position of 78 contracts of the same product, resulting in an equivalent aggregate long position of 2,318 long contracts, which was 318 contracts (15.93%) over the standard 2,000 lot expiration month position limit in effect for trades dates February 9, 10, and 11, 2011. Upon learning of the inadvertent overage the morning of February 10, 2011, CSI immediately reduced its excess MAR11 Brent Crude futures position to bring the aggregate position under the applicable limit, resulting in a profit of $9,610.
The Panel found that as a result, Credit Suisse violated Rule 562.
In accordance with the settlement offer, the Panel ordered Credit Suisse to pay a fine to the Exchange in the amount of $25,000 and a disgorgement of profits of $9,610.
August 16, 2012
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