BEAM BAYESIAN EFFICIENT ASSET MANAGEMENT, LLC
NYMEX RULE VIOLATION: 562. POSITION LIMIT VIOLATIONS
Any positions in excess of those permitted under the rules of the Exchange shall be deemed position limit violations.
Pursuant to an offer of settlement BEAM Bayesian Efficient Asset Management, LLC (“BEAM”) presented at a hearing on January 15, 2013, in which BEAM neither admitted nor denied the rule violation upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“BCC”) found that BEAM voluntarily submitted itself to the jurisdiction of the BCC for purposes of settling this matter and that on June 18, 2012, BEAM held a position of 3,790 short July 2012 Light Sweet Crude Oil Futures (“JUL12 Crude”) contracts, which was 790 contracts (26.33%) over the standard 3,000 lot expiration month position limit that was in effect for trade dates June 18, June 19 and June 20, 2012. BEAM continued to increase its position to an intraday high of 4,586 short contracts, which was 1,586 contracts (52.86%) over the standard expiration month position limit before liquidating its position to meet the 3,000 lot position limit for the JUL12 Crude contract. BEAM did not financially benefit from the violation.
The Panel found that as a result, BEAM violated Rule 562.
In accordance with the settlement offer, the Panel ordered BEAM to pay a fine to the Exchange in the amount of $25,000.
January 17, 2013
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