Sipi Metals Corporation
EXCHANGE 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 Sipi Metals Corporation (“Sipi”) presented at a hearing on March 26, 2015, in which Sipi neither admitted nor denied the rule violation upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that it has jurisdiction over Sipi pursuant to NYMEX Rules 400 and 418 and that on March 17, 2014 Sipi entered into an EFRP transaction which did not contain documentation of the related physical transaction and, therefore, was not a bona fide EFRP transaction.
The Panel found that as a result, Sipi violated Rule 538.H.
In accordance with the settlement offer, the Panel ordered Sipi to pay a fine to the Exchange in the amount of $7,500.
Register for regular updates here and manage your email preferences.