NOTICE OF DISCIPLINARY ACTION

MEMBER:

BNP Paribas Commodity Futures Ltd.

NYMEX RULE VIOLATION: 432. GENERAL OFFENSES

It shall be an offense:

X. to aid or abet the commission of any offense against the Exchange.

FINDINGS:

Pursuant to an offer of settlement BNP Paribas Commodity Futures Ltd. (“BNP-CFL”) presented at a hearing on September 21, 2016, in which BNP-CFL neither admitted nor denied the findings or rule violation upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found it had jurisdiction over BNP-CFL pursuant to Rules 400 and 402, and that on June 18, 2015 and June 25, 2015, BNP-CFL, in its capacity as a broker, executed two EFRP transactions, one on each date, that were intended to be a block trades. The EFRPs were non-bona fide because there were no corresponding related positions. As a result of BNP-CFL’s conduct, the counterparties entered into EFRPs that violated Rule 538.C.

The Panel found that, as a result, BNP-CFL violated Exchange Rule 432.X.

PENALTY:

In accordance with the settlement offer, the Panel ordered BNP-CFL to pay a fine to the Exchange in the amount of $15,000.