NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

KRZYSZTOF MARZEC

EXCHANGE RULES: RULE 432. GENERAL OFFENSES (IN PART)

It shall be an offense:

B.2. to engage in conduct or proceedings inconsistent with just and equitable principles of trade;

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

T. to engage in dishonorable or uncommercial conduct.

FINDINGS:

Pursuant to an offer of settlement in which Krzysztof Marzec (“Marzec”) neither admitted nor denied the rule violations or factual findings upon which the penalty is based, on October 5, 2016, a Panel of the New York Mercantile Exchange (“NYMEX”) Business Conduct Committee (“BCC” or “Panel”) found that it had jurisdiction over Marzec pursuant to Exchange Rules 400 and 402, as the conduct occurred while Marzec was an employee of a NYMEX member firm. The Panel also found that, during the time period from March 2013 through July 2013, Marzec engaged in a pattern of activity in the Platinum, RBOB Gasoline, and Heating Oil futures contract markets wherein he entered larger-sized orders on one side of the market and then cancelled them several seconds after smaller-sized orders on the opposite side of the book were executed. Marzec’s purpose in entering these larger-sized orders included encouraging market participants to trade with his smaller-sized orders and in many cases his orders had that effect.

The Panel concluded that Marzec thereby violated NYMEX Rules 432.B.2., 432.Q., and 432.T.

PENALTY:

In accordance with the settlement offer, the BCC Panel ordered Marzec to pay a fine in the amount of $45,000 and to serve a 20 business day suspension of direct or indirect access to any CME Group Inc. trading floor or electronic trading or clearing platform owned or operated by CME Group Inc., including CME Globex. The suspension shall run from October 7, 2016 through, and including, November 3, 2016.

See companion case COMEX 13-9490-BC-2