EOX HOLDINGS LLC
EXCHANGE RULES: Rule 536. Recordkeeping Requirements for Pit, Globex, and Negotiated Trades
H. Retention of Records
Each member and member firm and employees of the foregoing must keep full, complete and systematic records, including records created or transmitted electronically, together with all pertinent data and memoranda, of all transactions relating to its business of dealing in commodity interests and related cash or forward transactions in accordance with CFTC Regulation 1.35. Written and electronic records must be retained for a minimum of five years in permanent form. Oral communications required to be recorded pursuant to CFTC Regulation 1.35(a) must be retained for a minimum of one year past the date on which the oral communication occurred. Oral communications recorded by the Exchange pursuant to Section G. will be maintained by the Exchange for a minimum of one year past the date on which the oral communication occurred. All records required to be retained shall at all times be open to inspection by Exchange staff or any representative of the CFTC or the United States Department of Justice.
Rule 538. Exchange for Related Positions
G. Identification and Submission to the Clearing House
Each EFRP transaction shall be designated as such and shall be cleared through the Clearing House. Each such transaction shall be submitted to the Clearing House within the time period and in the manner specified by the Exchange. Clearing member firms are responsible for exercising due diligence as to the bona fide nature of EFRP transactions submitted on behalf of customers.
Pursuant to an offer of settlement that EOX Holdings LLC (“EOX” or the “Firm”) presented at a hearing on March 26, 2015, in which EOX neither admitted nor denied the factual allegations or rule violations upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that EOX voluntarily submitted itself to the jurisdiction of the BCC for purposes of settling this matter, and that between July 2011 and November 2011, EOX executed 8 EFRP transactions for customers and mistakenly reported such transactions as block trades. Further, EOX failed to maintain accurate written or electronic records of the EFRP transactions.
The Panel concluded that EOX violated Exchange Rules 536.H and 538.G.
In accordance with the settlement offer, the Panel ordered EOX to pay a fine to the Exchange in the amount of $40,000.
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