• NOTICE OF DISCIPLINARY ACTION

      • #
      • NYMEX 13-9264-BC
      • Effective Date
      • 19 September 2014
    • FILE NO.:

      NYMEX 13-9264-BC

      NON-MEMBER:

      TCT FUTURES, LLC.

      EXCHANGE RULE:

      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.

      FINDINGS:

      Pursuant to an offer of settlement that TCT Futures, LLC (“TCT”) presented at a hearing on September 17, 2014, in which TCT 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 TCT, a non-member of NYMEX, subject to its jurisdiction pursuant to NYMEX Rules 400 and 418. The Panel also found that during the time period from November 2012 through October 2013, TCT executed numerous block trades for customers in various Exchange contracts that were not reported to the Exchange within the required time limit following execution and that TCT failed to initially report accurate trade details for certain block trades to the Exchange.

      The Panel concluded that TCT violated Exchange Rule 526.F. (“Block Trades”).

      PENALTY:

      In accordance with the settlement offer, the Panel ordered TCT to pay a fine to the Exchange in the amount of $145,000.

      EFFECTIVE DATE:

      September 19, 2014