Banco BTG PACTUAL S.A.
432.W. GENERAL OFFENSES (in part)
It shall be an offense:
W. for a Member to fail to diligently supervise its employees and agents in the conduct of their business relating to the Exchange.
Pursuant to an offer of settlement that Banco BTG Pactual S.A. (“Banco BTG” or the “Firm”) presented at a hearing on August 19, 2015, in which Banco BTG 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 it had jurisdiction over Banco BTG pursuant to Exchange Rules 402 and 418 and that on several trade dates during the time period from January 2013 through February 2014, a trader then employed by Banco BTG (the “trader” or “its trader”) entered multiple orders in Palladium futures contracts without the intent to trade, but rather, to encourage market participants to trade opposite the smaller orders entered by the trader that were resting on the opposite side of the order book. After receiving a fill on the smaller orders, the large orders resting on the opposite side of the book sometimes were cancelled by the trader. Banco BTG failed to ensure that its trader conducted these trading activities in compliance with Exchange rules.
The Panel concluded that Banco BTG violated Exchange Rule 432.W.
In accordance with the settlement offer, the Panel ordered Banco BTG to pay a fine to the Exchange in the amount of $50,000.
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