Gulf Oil LP
538.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.
Market Regulation Advisory Notice RA1006-5
Q17: If an EFRP is submitted via Front-End Clearing, how soon after execution must the EFRP be submitted?
NYMEX and COMEX Products
For EFRPs executed between 7:00 a.m. and 5:45 p.m. Eastern Time, the trades must be submitted within one hour. For EFRPs executed between 5:45 p.m. and 7:00 a.m. Eastern Time, the trades must be submitted prior to 8:00 a.m. Eastern Time.
Pursuant to an offer of settlement Gulf Oil LP (“Gulf”) presented at a hearing on February 20, 2014, in which Gulf neither admitted nor denied the rule violations upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that Gulf voluntarily submitted itself to the jurisdiction of the Exchange for purposes of resolving this matter and that in June 2012, Gulf posted several EFRP transactions to the Exchange after the deadline imposed by Exchange Rules which resulted in the appearance that Gulf exceeded the applicable position limit.
The Panel found that as a result, Gulf violated Rule 538.G.
In accordance with the settlement offer, the Panel ordered Gulf to pay a fine to the Exchange in the amount of $25,000.
February 24, 2014
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