NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

MERCANTILE & MARITIME TRADING LTD.

NYMEX RULE VIOLATION: 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 Mercantile & Maritime Trading Ltd. (“MMT”) presented at a hearing on February 28, 2018, in which MMT neither admitted nor denied the rule violation upon which the penalty is based, a Panel of the New York Mercantile Exchange Business Conduct Committee (“Panel”) found that on trade date September 28, 2017, MMT executed a 77 lot Trading-At-Settlement (“TAS”) purchase for the October-November 2017 RBOB spread contract which created an intra-day position of 1,077 long October 2017 RBOB contracts or 77 contracts (7.70%) over the standard position limit for the October 2017 RBOB contract which went into effect at the close of business on September 26, 2017 and remained in effect for trade dates September 27, 28 and 29, 2017. The Panel found that MMT realized a profit of $36,867.60 by reducing the excess October 2017 RBOB Position.

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

PENALTY:

In accordance with the settlement offer, the Panel ordered MMT to pay a fine to the Exchange in the amount of $15,000 and disgorge profits in the amount of $36,867.60.