TROY VAN DELDEN
EXCHANGE RULE: NYMEX RULE 534: WASH TRADES PROHIBITED
No person shall place or accept buy and sell orders in the same product and expiration month, and, for a put or call option, the same strike price, where the person knows or reasonably should know that the purpose of the orders is to avoid taking a bona fide market position exposed to market risk (transactions commonly known or referred to as wash sales). Buy and sell orders for different accounts with common beneficial ownership that are entered with the intent to negate market risk or price competition shall also be deemed to violate the prohibition on wash trades. Additionally, no person shall knowingly execute or accommodate the execution of such orders by direct or indirect means.
Pursuant to an offer of settlement Troy Van Delden (“Van Delden”) presented at a hearing June 12, 2014, in which Van Delden neither admitted nor denied the rule violations upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“BCC Panel”) found that Van Delden is subject to the jurisdiction of the Exchange because the conduct at issue occurred while he was employed by an affiliate of a NYMEX member and that on September 28, 2011 and September 29, 2011, Van Delden entered into a series of wash trades in the October 2011 RBOB contract between accounts with the same beneficial owner during the last three days prior to expiration of the October 2011 RBOB contract. In each of these instances, Van Delden was the sole decision maker for both the buy and sell side of the trades.
The Panel found that as a result, Van Delden violated NYMEX Rule 534.
In accordance with the settlement offer, the BCC Panel ordered Van Delden to pay a fine to the Exchange in the amount of $10,000. The Panel also suspended Van Delden from all direct or indirect access to any trading floor or electronic trading or clearing platform owned or operated by CME Group Inc., including Globex, for a period of 5 business days. The suspension will run from June 16, 2014 through June 20, 2014, inclusive.
June 16, 2014
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