• NOTICE OF DISCIPLINARY ACTION

      • #
      • NYMEX 16-0527-BC
      • Effective Date
      • 31 March 2017
    • NON-MEMBER:

      FRERE HALL CAPITAL MANAGEMENT LLP

      NYMEX RULE: 562. POSITION LIMIT VIOLATIONS

      Any positions in excess of those permitted under the rules of the Exchange shall be deemed position limit violations.

      FINDINGS:

      Pursuant to an offer of settlement Frere Hall Capital Management LLP (“Frere”) presented at a hearing on March 29, 2017, in which Frere neither admitted nor denied the rule violation upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“BCC”) found that on September 16, 2016, Frere opened the trading day holding a futures equivalent position of 3,831 short October 2016 Crude (“OCT16 CL”) contracts which exceeded the 3,000 lot standard expiration month limit by 831 contracts or 27.7% and later reached an intraday high position of 4,335 short OCT16 CL contracts, which was 1,335 contracts or 44.5% above the position limit that was in effect at the close of business on September 15, 2016 through September 20, 2016.

      The Panel found that as a result, Frere violated Rule 562.

      PENALTY:

      In accordance with the settlement offer, the Panel ordered Frere to pay a fine to the Exchange in the amount of $25,000.