GOLDFINCH CAPITAL MANAGEMENT LP
562. POSITION LIMIT VIOLATIONS
Any positions in excess of those permitted under the rules of the Exchange shall be deemed position limit violations.
559.F. CONDITIONAL LIMIT IN NYMEX LAST DAY FINANCIAL NATURAL GAS CONTRACTS
The Market Regulation Department may grant a Conditional limit in Last Day Financial Natural Gas contracts of up to the equivalent of five thousand (5,000) NYMEX Physical Natural Gas Contracts (NG) during the period that position limits are applicable. Any participant seeking such exemption must agree: (1) not to hold a position in the NG contract during the last three days of trading; (2) provide the Exchange information on the complete book of all positions related to the Henry Hub; and (3) any other information /documentation required by the Exchange.
Violations of position limits and approved exemption limits are subject to the provisions of Rule 562.
Pursuant to an offer of settlement Goldfinch Capital Management LP (“Goldfinch”) presented at a hearing on November 8, 2012, in which Goldfinch neither admitted nor denied the rule violation upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that Goldfinch voluntarily submitted itself to the jurisdiction of the Exchange for purposes of settling this matter and that on trade date January 26, 2012, Goldfinch, while holding a long position of 1,187.75 February 2012 Natural Gas Look-Alike Last Day Financial Futures, purchased 200 February 2012 Natural Gas Futures, in violation of its Conditional Limit applicable on January 25, 26 and 27, 2012. The Panel found that Goldfinch mistakenly purchased the 200 February 2012 Natural Gas Futures, instead of 200 March 2012 Natural Gas Futures. Goldfinch realized the error and, within 50 seconds, placed an order to sell the 200 February 2012 Natural Gas Futures to bring itself in compliance with its Conditional Limit. The sell order was fully executed within two minutes and Goldfinch lost $580 on the trade. Goldfinch immediately notified the Exchange of this violation.
The Panel found that as a result of the foregoing, Goldfinch violated Rule 562. This was Goldfinch’s fourth position limit violation within 24 months.
In accordance with the settlement offer, the Panel ordered Goldfinch to pay a fine to the Exchange in the amount of $70,000.
November 12, 2012
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