NOTICE OF DISCIPLINARY ACTION

MEMBER:

TRADEFORECASTER GLOBAL MARKETS

NYMEX RULE VIOLATION: EXCHANGE RULE 432. GENERAL OFFENSES

It shall be an offense:

Q. to commit an act which is detrimental to the interests or welfare of the Exchange or to engage in any conduct which tends to impair the dignity or good name of the Exchange;

W. for any party to fail to diligently supervise its employees and agents in the conduct of their business relating to the Exchange;

FINDINGS:

Pursuant to an offer of settlement TradeForecaster Global Markets (“TradeForecaster”) presented at a hearing on April 5, 2016, in which TradeForecaster neither admitted nor denied the rule violation upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found it had jurisdiction over TradeForecaster pursuant to NYMEX Rules 400 and 402 and that, on January 20, 2015, a TradeForecaster employee inadvertently failed to deactivate an ATS which employed an auto spreader strategy before activating a second ATS which was neither designed nor intended to run simultaneously. The employee’s error allowed the strategies to respond to each other’s perceived positions which resulted in continuous purchases by the auto spreader strategy. The purchases rapidly escalated the price of the June15-Dec15 Crude Oil Spread which prompted a Velocity Logic event.

The Panel found that, as a result, TradeForecaster violated Exchange Rule 432.Q (Conduct Detrimental to the Exchange) and 432.W. (Failure to Supervise).

PENALTY:

In accordance with the settlement offer, the Panel ordered TradeForecaster to pay a fine to the Exchange in the amount of $115,000.