NYMEX Rule 524.A. Trading at Settlement (“TAS”) Transactions
2. TAS orders may be entered on Globex at any time the applicable contracts are available for TAS trading on Globex and during each TAS contract’s prescribed pre-open time period. The initiation of any TAS order on Globex outside these time periods is prohibited.
NYMEX Rule 432. General Offenses
It shall be an offense:
L.2. to fail to fully answer all questions and produce all books and records at such hearing or in connection with any investigation, or to make false statements.
Y. to improperly use the Globex platform or any electronic trading or clearing platform owned or controlled by CME Group or permit the unauthorized use of such platforms.
Pursuant to an offer of settlement that Nicholas Policano (“Policano”) presented at a hearing on April 12, 2012, in which Policano neither admitted nor denied the findings or the rule violations upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that on October 7, 2011, Policano, while acting in the capacity of an authorized representative, contractor or agent of member firm MBF Trading and therefore subject to jurisdiction under NYMEX Rule 400, entered TAS orders prior to the security status messages stating that the product group had entered a pre-open state and improperly used the Globex platform by entering TAS orders prior to the security status message, in violation of NYMEX Rule 524.A. (Trading at Settlement (“TAS”) Transactions) and NYMEX Rule 432.Y. (Improper Use of the Globex Platform). The Panel also found that Policano failed to provide answers to Market Regulation’s questionnaire about his violation on October 7, 2011, a violation of NYMEX Rule 432.L.2. (Failure to Fully Answer Questions in Connection with an Investigation).
In accordance with the settlement offer, the Panel ordered Policano to pay a fine to the Exchange in the amount of $10,000.
April 16, 2012
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