LAURION CAPITAL MANAGEMENT LP
EXCHANGE RULE: 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 Laurion Capital Management LP (“Laurion”), presented at a hearing on June 12, 2014, in which Laurion 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 Laurion pursuant to Exchange Rules 400 and 402, as Laurion is an affiliate of NYMEX member Laurion Capital Master Fund, Ltd. (“LCMF”), and that at the close of business on January 24, 2014, LCMF, one of the funds to which Laurion provided investment management services, held a futures equivalent position of 1,771 long FEB14 NatGas contracts, which was 771 contracts (77.1%) over the 1,000 lot standard expiration month limit. The standard expiration month limit went into effect at the close of business on January 24, 2014 and remained in effect for trade dates January 27, 28, and 29, 2014.
The Panel found that as a result, Laurion violated Rule 562.
In accordance with the settlement offer, the Panel ordered Laurion to pay a fine to the Exchange in the amount of $25,000.
June 16, 2014
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