D. E. SHAW & CO., L.P.
NYMEX RULE VIOLATION:
562. POSITION LIMIT VIOLATIONS
Any positions in excess of those permitted under the rules of the exchange shall be deemed position limit violations.
Pursuant to an offer of settlement D. E. Shaw & Co., L.P. (“D. E. Shaw & Co.”) presented at a hearing on April 29, 2014, in which D. E. Shaw & Co. neither admitted nor denied the rule violation upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“BCC”) found that it had jurisdiction over D. E. Shaw & Co. pursuant to Exchange Rules 400 and 402, as D. E. Shaw & Co. is an affiliate of NYMEX member D. E. Shaw Plasma Portfolios, L.L.C. (“D. E. Shaw Plasma”), and that on October 25, 2013, D. E. Shaw Plasma, one of the funds to which D. E. Shaw & Co. and certain affiliates provided investment management services, held a long position of 1,807.50 November 2013 Henry Hub Natural Gas Look-Alike Financial Futures contracts (“NOV13 Financial”), which was 807.5 contracts (80.75%) over the 1,000-lot standard position limit in effect for trade dates October 25, 28, and 29, 2013.
The Panel found that, as a result, D. E. Shaw & Co. violated NYMEX Rule 562 (Position Limit Violations).
In accordance with the settlement offer, the Panel ordered D. E. Shaw & Co. to pay a fine to the Exchange in the amount of $75,000.
May 1, 2014
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