EXCHANGE RULE 526. BLOCK TRADES
The Exchange shall designate the products in which block trades shall be permitted and determine the minimum quantity thresholds for such transactions. The following shall govern block trades:
F. The seller must ensure that each block trade is reported to the Exchange within five minutes of the time of execution. The report must include the contract, contract month, price, quantity of the transaction, the respective clearing members, the time of execution, and, for options, strike price, put or call and expiration month. The Exchange shall promptly publish such information separately from the reports of transactions in the regular market.
Pursuant to an offer of settlement that Jefferies LLC (“Jefferies”), formerly known as Jefferies Bache LLC, presented at a hearing on April 15, 2015, in which Jefferies neither admitted nor denied the rule violations upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that Jefferies was subject to the jurisdiction of the BCC pursuant to Exchanges Rules 400 and 402 as a NYMEX member, and that on one occasion in November 2012 and two occasions in July 2013, Jefferies executed block trades for customers that were not reported to the Exchange within the applicable time limit following execution and also misreported the true and accurate time of execution of these trades.
The Panel concluded that Jefferies violated Exchange Rules 526.F. (“Block Trades”).
In accordance with the settlement offer, the Panel ordered Jefferies to pay a fine to the Exchange in the amount of $20,000.
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