ING Bank NV
Parties to any EFRP transaction must maintain all documents relevant to the Exchange contract and the cash, OTC swap, OTC option, or other OTC derivatives, including all documents customarily generated in accordance with relevant market practices and any documents reflecting payment and transfer of title. Any such documents must be provided to the Exchange upon request, and it shall be the responsibility of the carrying clearing member firm to provide such requested documentation on a timely basis.
Pursuant to an offer of settlement ING Bank NV (“ING”) presented at a hearing on April 29, 2014, in which ING neither admitted nor denied the rule violations upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found it has jurisdiction over ING pursuant to NYMEX Rules 400 and 418 and that on two trade dates, May 28, 2013 and October 28, 2013, ING entered into EFRP transactions which did not contain documentation of the related swap transaction and, therefore, were not bona fide EFRP transactions. ING also served as the broker for these transactions.
The Panel found that as a result, ING violated Rule 538.H.
In accordance with the settlement offer, the Panel ordered ING to pay a fine to the Exchange in the amount of $25,000.
May 1, 2014
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