ELLIOTT MANAGEMENT CORPORATION
NYMEX RULE VIOLATION: 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 Elliott Management Corporation (“Elliott”) presented at a hearing on October 28, 2014, in which Elliott neither admitted nor denied the rule violation upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“BCC”) found that Elliott was subject to the jurisdiction of the BCC pursuant to NYMEX Rule 418 and that at the close of business on April 23, 2014, Elliott held a futures equivalent position of 2,069 long May 2014 Henry Hub Natural Gas Futures (“MAY14 NatGas”) contracts, which was 1,069 contracts, or 106.9%, in excess of the 1,000-lot standard position limit which was in effect for MAY14 NatGas on trade dates April 24, 25, and 28, 2014. Upon realizing it was over the limit, Elliott liquidated its overage, resulting in a loss.
The Panel found that as a result, Elliott violated Rule 562.
In accordance with the settlement offer, the Panel ordered Elliott to pay a fine to the Exchange in the amount of $30,000.
October 30, 2014
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