NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

BUNKERBRIDGE PTE LTD.

EXCHANGE RULE: NYMEX RULE 538. EXCHANGE FOR RELATED POSITIONS

The following transactions shall be permitted by arrangement between parties in accordance with the requirements of this rule: Exchange for Physical (“EFP”) – A privately negotiated and simultaneous exchange of an Exchange futures position for a corresponding cash position. Exchange for Risk (“EFR”) – A privately negotiated and simultaneous exchange of an Exchange futures position for a corresponding OTC swap or other OTC instrument. Exchange of Options for Options (“EOO”) – A privately negotiated and simultaneous exchange of an Exchange option position for a corresponding OTC option position or other OTC instrument with similar characteristics. For purposes of this rule, an EFP, EFR or EOO shall be referred to as an Exchange for Related Position (“EFRP”).

EXCHANGE RULE 538. C. RELATED POSITION

The related position component of an EFRP must be the cash commodity underlying the Exchange contract or a by-product, a related product or an OTC derivative of such commodity underlying the Exchange contract or a by-product, a related product or an OTC derivative instrument of such commodity that has reasonable degree of price correlation to the commodity underlying the Exchange contract. The related position component of an EFRP may not be a futures contract or an option on a futures contract. Each EFRP requires a bona fide transfer of ownership of the underlying asset between the parties or a bona fide, legally binding contract between the parties consistent with relevant market conventions for the particular related position transaction.

The execution of an EFRP transaction may not be contingent upon the execution of another EFRP or related position transaction between the parties where the transaction result in the offset of the related position without the incurrence of market risk that is material in the context of the related position transactions.

FINDINGS:

Following an evidentiary hearing on the merits on November 21, 2016, on February 9, 2017, a Panel of the NYMEX Business Conduct Committee (“Panel”) issued a written decision finding that, on December 1, 2014, Bunkerbridge PTE Ltd. (“Bunkerbridge”), a non-member, entered into an EFRP transaction which was in violation of Exchange Rule 538.C.

Based upon the evidence presented, the Panel found no evidence, as required by Exchange Rule 538.C., that Bunkerbridge, as the seller of a futures contract on the relevant date, purchased a corresponding swap or other related position. The Panel found that the EFRP transaction Bunkerbridge entered into on December 1, 2014 was non-bona fide as it did not involve the requisite transfer of ownership of the cash commodity underlying the Exchange contract or a by-product, related product, or OTC instrument, between Bunkerbridge and its counterparty. In reaching its decision, the Panel found that Bunkerbridge, as a party to the noted EFRP transaction, bore the responsibility to comply with Exchange Rules, including compliance with terms of the contract and recordkeeping requirements, and such responsibility could not be deferred to a broker or Futures Commission Merchant (“FCM”).

Accordingly, the Panel found that Bunkerbridge violated Exchange Rule 538.C (“Exchange for Related Positions – Related Position”).

PENALTY:

Based on the record and the Panel’s findings and conclusions, the Panel ordered Bunkerbridge to pay a fine to the Exchange in the amount of $30,000.