NYMEX RULE 432 GENERAL OFFENSES
It shall be an offense:
L.1. to fail to appear before the Board, Exchange staff or any investigative or hearing committee at a duly convened hearing, scheduled staff interview or in connection with any investigation;
On October 7, 2014, a Panel of the New York Mercantile Exchange (“NYMEX”) Probable Cause Committee (“PCC”) charged non-member, George Dennis (“Dennis”) with violating NYMEX Rule 432.L.1., based on allegations that he failed to appear for scheduled interviews with Market Regulation staff.
On February 25, 2015, a Hearing Panel Chair of the NYMEX Business Conduct Committee (“BCC”) entered an order finding that Dennis failed to answer the charge issued against him. In failing to answer the charge, the Hearing Panel Chair further ordered that Dennis was deemed to have admitted the charge issued and waived his right to a hearing on the merits of the charge.
Pursuant to NYMEX Rule 407.C, a penalty hearing was held before a Panel of the BCC (“Panel”) on March 18, 2015. The Panel found that Dennis had committed the admitted charge. The Panel found that Dennis failed to appear at scheduled interviews with Market Regulation staff, which materially impacted Market Regulation’s investigation into a potential rule violation.
In accordance with NYMEX Legacy Rule 402.D (Actions Against Non-Members), the BCC Panel suspended Dennis for a period of five years from (i) applying for Membership at any CME Group exchange; (ii) all direct and indirect access to any trading or clearing platform owned or operated by CME Group, Inc.; and (iii) access to any trading floor owned or operated by any CME Group, Inc. exchange. The suspension shall run from April 22, 2015 to April 22, 2020, inclusive.
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