FC STONE LLC
NYMEX RULE VIOLATION: RULE 576 IDENTIFICATION OF GLOBEX TERMINAL OPERATORS
Each Globex terminal operator shall be identified to the Exchange, in the manner prescribed by the Exchange, and shall be subject to Exchange rules. If user IDs are required to be registered with the Exchange, it is the duty of the clearing member to ensure that registration is current and accurate at all times. Each individual must use a unique user ID to access Globex. In no event may a person enter an order or permit the entry of an order by an individual using a user ID other than the individual’s own unique user ID.
Pursuant to an offer of settlement in which FC Stone LLC (“FC Stone”) neither admitted nor denied the Rule violations upon which the penalty is based, on December 19, 2013, a Panel of the NYMEX Business Conduct Committee found that on one or more occasions between August 2010, and December 2010, FC Stone allowed multiple users to use a single Tag 50 user ID. In addition, FC Stone erroneously submitted three internal log-in IDs to the Exchange in the place of registered Tag 50 user IDs. Further, between May 2012 and March 2013, FC Stone erroneously registered a team automated trading system (“ATS”) as a manual Tag 50 User ID. Finally, between May 2012 and March 2013, FC Stone registered a Tag50 User ID to an individual when that Tag 50 User ID was previously registered to another user. The Panel concluded that in so doing, FC Stone violated NYMEX Rule 576.
In accordance with the settlement offer, the Panel ordered FC Stone to pay a fine of $22,500.
December 23, 2013
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