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 Sumitomo Corporation (“Sumitomo”) presented at a hearing on February 12, 2013, in which Sumitomo neither admitted nor denied the rule violation upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“BCC”) found that Sumitomo voluntarily submitted itself to the jurisdiction of the BCC for purposes of settling this matter and that at the close of business on May 25, 2012, Sumitomo’s affiliate, Pacific Summit Energy, LLC, held an aggregate position of 3,360 long June 2012 Dominion South Point Natural Gas Basis Futures contracts that exceeded the expiration month position limit by 1,360 contracts or 68% over the permitted level.
The Panel found that as a result, Sumitomo violated Rule 562.
In accordance with the settlement offer, the Panel ordered Sumitomo to pay a fine to the Exchange in the amount of $25,000.
February 14, 2013
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