NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

RWE SUPPLY & TRADING GMBH

EXCHANGE RULES: RULE 575.A. (DISRUPTIVE PRACTICES PROHIBITED)

All orders must be entered for the purpose of executing bona fide transactions. Additionally, all non-actionable messages must be entered in good faith for legitimate purposes.

A. No person shall enter or cause to be entered an order with the intent, at the time of order entry, to cancel the order before execution or to modify the order to avoid execution.

RULE 433. STRICT LIABILITY FOR THE ACTS OF AGENTS

Pursuant to Section 2(a)(1)(B) of the Commodity Exchange Act, and notwithstanding Rule 432.W., the act, omission, or failure of any official, agent, or other person acting for any party within the scope of his employment or office shall be deemed the act, omission or failure of the party, as well as of the official, agent or other person who committed the act.

FINDINGS:

Pursuant to an offer of settlement in which RWE Supply & Trading GmbH (“RWE”) neither admitted nor denied the factual findings or rule violation upon which the penalty is based, on December 20, 2017, a Panel of the Commodity Exchange (“COMEX”) Business Conduct Committee (“BCC” or “Panel”) found that, on multiple occasions in September 2016, a trader for RWE engaged in certain activity in the Silver and Gold futures markets that consisted of entering 100-lot orders on one side of the market without the intent to trade. Specifically, the trader entered these 100-lot orders to obtain fills on his smaller resting orders on the opposite side of the market. After receiving fills on the smaller orders, the trader would cancel the 100-lot orders mostly within seconds. The Panel concluded that, pursuant to Exchange Rule 433, RWE was strictly liable for the acts of its employees whose conduct the Panel concluded violated NYMEX Rule 575.A.

PENALTY:

In accordance with the settlement offer, the BCC Panel ordered RWE to disgorge profits in the amount of $18,841.