Canadian Imperial Bank of Commerce
LEGACY NYMEX RULE VIOLATION:
RULE 538.H. Documentation
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 Canadian Imperial Bank of Commerce (“CIBC”) presented at a hearing on February 18, 2015, in which CIBC neither admitted nor denied the rule violation upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found it had jurisdiction over CIBC pursuant to NYMEX Rules 400 and 402 and that, on July 1, 2013, CIBC brokered and entered into two EFRPs which did not contain documentation of the related OTC transaction and, therefore, were not bona fide EFRPs.
The Panel found that, as a result, CIBC violated Legacy Exchange Rule 538.H. (“Recordkeeping”).
In accordance with the settlement offer, the Panel ordered CIBC to pay a fine to the Exchange in the amount of $15,000.
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