• NOTICE OF DISCIPLINARY ACTION

      • #
      • NYMEX 17-0829-BC
      • Effective Date
      • 02 April 2018
    • NON-MEMBER:

      CITY FINANCIAL INVESTMENT COMPANY LIMITED

      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 City Financial Investment Company Limited (“City Financial”) presented at a hearing on March 28, 2018, in which City Financial 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 November 27, 2017, City Financial held a futures equivalent position of 1,950 short December 2017 Henry Hub Natural Gas Look-Alike Last Day Financial Futures (“DEC17 HH”) contracts, which was 950 contracts (95%) over the position limit of 1,000 lots in effect for trade date November 27, 2017.

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

      PENALTY:

      In accordance with the settlement offer, the Panel ordered City Financial to pay a fine to the Exchange in the amount of $30,000.