Advantage Futures, LLC
EXCHANGE RULE: 716. Duties of Clearing Members
Prior to the last day of trading in a physically delivered contract, each clearing member shall be responsible for assessing the account owner’s ability to make or take delivery for each account on its books with open positions in the expiring contract. Absent satisfactory information from the account owner, the clearing member is responsible for ensuring that the open positions are liquidated in an orderly manner prior to the expiration of trading.
Pursuant to an offer of settlement that Advantage Futures, LLC (“Advantage”) presented at a hearing on February 18, 2015, in which Advantage neither admitted nor denied the findings or the rule violation upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that Advantage, a member of the Exchange, was subject to the jurisdiction of the BCC, pursuant to Exchange Rules 400 and 402 and that on July 22, 2014, the last trading date for the physically settled August 2014 Crude Oil (“AUG14 Crude”) futures contract , Advantage failed to ensure that an open position held on its books in the physically delivered Crude Oil futures contract was liquidated in an orderly manner prior to the expiration of trading.
The Panel found that as a result of the foregoing, Advantage violated Exchange Rule 716.
In accordance with the settlement offer, the Panel ordered Advantage to pay a fine to the Exchange in the amount of $10,000.
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