EAGLE TRADING SYSTEMS INC.
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 Eagle Trading Systems Inc. (“Eagle”) presented at a hearing on May 30, 2012, in which Eagle neither admitted nor denied the rule violation upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“BCC”) found that Eagle voluntarily submitted itself to the jurisdiction of the BCC for purposes of settling this matter and that on August 25, 2011, Eagle inadvertently maintained an open September 2011 Henry Hub Natural Gas Futures position of 1,333 short contracts, which was inadvertently 333 contracts (33.3%) over the 1,000 contract spot month position limit in effect for trade date August 25, 2011, Eagle’s first violation of a position limit.
The Panel found that as a result, Eagle violated Rule 562.
In accordance with the settlement offer, the Panel ordered Eagle to pay a fine to the Exchange in the amount of $25,000.
June 1, 2012
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