Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A.
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 Cooperatieve Centrale Raiffeisen- Boerenleenbank B.A. (“Rabobank”) presented at a hearing on February 20, 2014 in which Rabobank, who is subject to the jurisdiction of the Exchange pursuant to Rule 418, neither admitted nor denied the rule violations upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that on July 3, 2013, Rabobank entered into two EFRP transactions without maintaining all the correct documentation; and therefore, the EFRP transactions were not bona fide transactions. .
The Panel found that as a result, Rabobank violated Rule 538.H.
In accordance with the settlement offer, the Panel ordered Rabobank to pay a fine to the Exchange in the amount of $15,000.
February 24, 2014
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