MAREX FINANCIAL LIMITED
EXCHANGE RULE 526. BLOCK TRADES
The Exchange shall designate the products in which block trades shall be permitted and determine the minimum quantity thresholds for such transactions. The following shall govern block trades:
F. The seller must ensure that each block trade is reported to the Exchange within five minutes of the time of execution. The report must include the contract, contract month, price, quantity of the transaction, the respective clearing members, the time of execution, and, for options, strike price, put or call and expiration month. The Exchange shall promptly publish such information separately from the reports of transactions in the regular market.
Pursuant to an offer of settlement that Marex Financial Limited (“Marex Financial”), presented at a hearing on February 18, 2015, in which Marex Financial 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 Marex Financial was subject to the jurisdiction of the BCC pursuant to Exchanges Rules 400 and 402 as an affiliate of a NYMEX member, and during the months of December 2011, March 2013 and September 2014, Marex Financial executed block trades for customers that were not reported to the Exchange within the applicable time limit following execution and also misreported the true and accurate time of execution of the March 2013 block trade.
The Panel concluded that Marex Financial violated Exchange Rules 526.F. (“Block Trades”).
In accordance with the settlement offer, the Panel ordered Marex Financial to pay a fine to the Exchange in the amount of $12,500.
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