SUMMERHAVEN INVESTMENT MANAGEMENT, LLC
LEGACY EXCHANGE RULE:
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 that SummerHaven Investment Management, LLC (“SummerHaven”), presented at a hearing on April 15, 2015, in which SummerHaven neither admitted nor denied the factual allegations or rule violations upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that SummerHaven was subject to the jurisdiction of the BCC pursuant to Exchanges Rules 402 and 418, and that on trade date June 2, 2014, SummerHaven entered into an EFRP transaction that did not contain documentation of the corresponding simultaneous swap transaction, and therefore was not a bona fide EFRP.
The Panel concluded that SummerHaven violated Legacy Exchange Rule 538.H.
In accordance with the settlement offer, the Panel ordered SummerHaven to pay a fine to the Exchange in the amount of $7,500.
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