WORLD FUEL SERVICES INC.
NYMEX RULE VIOLATION:
524.B. TRADING AT MARKER (“TAM”) TRANSACTIONS
The following shall govern TAM transactions:
1. TAM orders may be entered on Globex at any time the applicable contracts are available for TAM trading on Globex and during each TAM contract’s prescribed pre-open time period. The initiation of any TAM order on Globex outside these time periods is prohibited.
2. TAM-eligible commodities and contract months may be executed as block trades pursuant to the requirement of Rule 526.
3. TAM transactions may be executed at the current day’s applicable marker price or at any valid price increment ten ticks higher or lower than the applicable marker price.
4. A Party carrying an open long (short) Platts Tam or Platts Tam block position in RBOB Gasoline (“RB”) or NY Harbor ULSD (“HO”) futures may not sell (buy) in the underlying RB or HO market during the time period from 3:14:00.000 to 3:14:59.999 p.m. Eastern Time.
As of September 9, 2013, Platts TAM was terminated and Rule 524.B.4 has been removed from the NYMEX Rulebook.
Pursuant to an offer of settlement World Fuel Services, Inc. (“World Fuel”) presented at a hearing on February 20, 2014, in which World Fuel neither admitted nor denied the findings or the rule violation upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“BCC”) found that it had jurisdiction over World Fuel pursuant to Exchange Rule 418 and that on September 6, 2013, World Fuel carried open short Platts TAM positions in the NY Harbor ULSD (“HO”) futures contract and then bought two October 2013 HO futures contracts in the underlying HO market during the time period from 3:14:00.000 to 3:14:59.999 PM EST.
The Panel found that as a result, World Fuel violated Rule 524.B.4.
In accordance with the settlement offer, the Panel ordered World Fuel to pay a fine to the Exchange in the amount of $7,500.
February 24, 2014
CME Group is the world's leading and most diverse derivatives marketplace. The company is comprised of four Designated Contract Markets (DCMs). Further information on each exchange's rules and product listings can be found by clicking on the links to CME, CBOT, NYMEX and COMEX.