NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

EVOLUTION MARKETS 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 Evolution Markets Ltd. (“Evolution”) presented at a hearing on September 21, 2016, in which Evolution 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 Evolution pursuant to Rules 402 and 418, and that on July 1, 2015, Evolution, in its capacity as a broker, executed an EFRP transaction. The EFRP was non-bona fide because there was no evidence of a corresponding related position. As a result, the counterparties entered into an EFRP that violated Rule 538.C.

The Panel found that, as a result, Evolution violated Exchange Rule 432.X.

PENALTY:

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