EXCHANGE RULE VIOLATIONS: Rule 432. General Offenses (in part)
It shall be an offense:
T. to engage in dishonorable or uncommercial conduct.
Market Regulation Advisory Notice RA1304-5 (“Improper Conduct with Respect to User-Defined Spreads on CME Globex”) (in part)
Market participants are reminded that knowingly creating and/or trading UDS instruments in a manner intended to deceive or unfairly disadvantage other market participants is considered uncommercial conduct detrimental to the welfare of the exchange and will result in disciplinary action for violation of Rule 432 ("General Offenses").
Pursuant to an offer of settlement Jordan Meisner (“Meisner”) presented at a hearing on March 18, 2015 in which Meisner neither admitted nor denied the findings or rule violations upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that Meisner was subject to the jurisdiction of the Exchange pursuant to Rules 400 and 402 because at the time of the transactions at issue, he was an employee of a NYMEX member, and that during the time period of August 2013 to February 2014, Meisner entered 1-lot orders in multiple user-defined covered options instruments which resulted in the under allocation of futures contracts that should have been associated with the covered options instrument.
The Panel found that as a result, Meisner violated NYMEX Rule 432.T.
In accordance with the settlement offer, the Panel ordered Meisner to pay a fine to the Exchange in the amount of $40,000.
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