NOTICE OF DISCIPLINARY ACTION

New York Mercantile Exchange, Inc.

NOTICE OF DISCIPLINARY ACTION

FILE NO.:                     23-CH-2324

MEMBER FIRM:           Barclays Capital Inc.  

NYMEX Rule:               930. PERFORMANCE BOND REQUIREMENTS: ACCOUNT HOLDER LEVEL

                                    K. Liquidation of Accounts 

If an account holder fails to comply with a performance bond call within a reasonable time (the clearing member may deem one hour to be a reasonable time), the clearing member may close out the account holder's trades or sufficient contracts thereof to restore the account holder's account to required performance bond status. Clearing members shall maintain full discretion to determine when and under what circumstances positions in any account shall be liquidated.

FINDINGS:                   Pursuant to an offer of settlement in which Barclays Capital Inc. (“BCI”) neither admitted nor denied the finding or the rule violation upon which the penalty is based, on March 14, 2024, the Clearing House Risk Committee (“CHRC”) found that BCI contractually agreed to a period of time during which the firm’s full discretion to determine when and under what circumstances positions could be liquidated was restricted. The CHRC thereby concluded that BCI violated NYMEX Rules 930.K.  The CHRC also found that BCI has since corrected the finding and the cited customer agreement is now in compliance with Exchange rules.

PENALTY:                    In accordance with the settlement offer, the CHRC imposed a $25,000 fine.

EFFECTIVE DATE:       March 15, 2024