• #
      • NYMEX 16-0590-BC-1
      • Effective Date
      • 20 April 2018



      No person shall place or accept buy and sell orders in the same product and expiration month, and, for a put or call option, the same strike price, where the person knows or reasonably should know that the purpose of the orders is to avoid taking a bona fide market position exposed to market risk (transactions commonly known or referred to as wash sales). Buy and sell orders for different accounts with common beneficial ownership that are entered with the intent to negate market risk or price competition shall also be deemed to violate the prohibition on wash trades. Additionally, no person shall knowingly execute or accommodate the execution of such orders by direct or indirect means.


      Pursuant to an offer of settlement, Jared J. Hunter (“Hunter”) presented at a hearing on April 18, 2018, in which Hunter neither admitted nor denied the rule violation upon which the penalty is based, a Panel of the New York Mercantile Exchange Business Conduct Committee (“BCC Panel”) found that between February 2016 and August 2016, Hunter entered several wash trades in Natural Gas Futures contracts between accounts with the same beneficial owner in order to move positions between trading accounts.

      The BCC Panel found that as a result, Hunter violated Rule 534.


      In accordance with the settlement offer, the BCC Panel ordered Hunter to pay a fine to the Exchange in the amount of $5,000 and serve a two-month suspension from membership privileges on any CME Group Inc. exchange, access to all CME Group Inc. trading floors and direct or indirect access to all electronic trading and clearing platforms owned or operated by CME Group Inc., including Globex. The suspension will run from April 20, 2018 through, and including, June 20, 2018. The BCC Panel took Hunter’s financial condition into account when levying the sanction.