NOTICE OF SUMMARY ACTION

FILE NO.:

COMEX RSRH-18-5289

MEMBER FIRM:

4STOX N.V.

RULE VIOLATIONS:

703.B. (B.) Load-Out Procedures for Base Metals and 512. Reporting Infractions

703.B (B.) Load-Out Procedures for Base Metals

The warehouse shall transmit to the Registrar by 11:00 a.m. Central Prevailing Time, the name, location of regular facility, the number of warrants cancelled for load out (via primary conveyance for aluminum, lead and zinc) and associated loading orders on a daily basis.  The Registrar shall maintain a current record of the number of warrants cancelled for load out (via primary conveyance for aluminum, lead and zinc) and shall be responsible for posting this record on the Exchange website.

512.A. General

All data, records and other information required by the rules to be reported to the Exchange or the Clearing House, as applicable, must be submitted in an accurate, complete and timely manner.

FINDINGS:

On June 4, 2018 a 25 lot CLO was entered into the system and loading instructions were received on June 7^h but not reported to the Exchange until July 30^th.  On June 26, 2018 a 36 lot CLO was entered into the system and loading instructions were received on June 26^th but not reported to the Exchange until July 30^th.  On June 27, 2018 a 13 lot CLO was entered into the system and loading instructions were received on July 2^nd but not reported to the Exchange until July 30^th.  Lastly on July 2, 2018 a 29 lot CLO was entered into the system and loading instructions were revived on July 3^rd but not reported to the Exchange until July 30^th.  As you can tell from the above the loading instructions were only sent to the Registrar’s Office on July 30, 2019 after we sent multiple emails and placed several calls regarding the loading of these warrants.

PENALTY:

On March 20, 2019, 4STOX N.V., pursuant to Rule 512 (“Reporting Infractions”), was issued a $7,500 fine by the 512 Committee for their violations of Rule 703.B. (B.).

EFFECTIVE DATE:

April 19, 2019