NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

Marcello Arrambide

NYMEX RULE VIOLATION: Rule 576. Identification of Globex Terminal Operators

Each Globex terminal operator shall be identified to the Exchange, in the manner prescribed by the Exchange, and shall be subject to Exchange rules. If user IDs are required to be registered with the Exchange, it is the duty of the clearing member to ensure that registration is current and accurate at all times. Each individual must use a unique user ID to access Globex. In no event may a person enter an order or permit the entry of an order by an individual using a user ID other than the individual’s own unique user ID.

FINDINGS:

Pursuant to an offer of settlement in which Marcello Arrambide (“Arrambide”) neither admitted nor denied the rule violation or factual findings upon which the penalty is based, on April 17, 2019, a Panel of the New York Mercantile Exchange (“NYMEX”) Business Conduct Committee (“Panel”) found that prior to June 2017, Arrambide provided his Tag 50 user ID to two individuals contracted by Arrambide for the purpose of testing and using a trading algorithm on a customer account over which Arrambide had been granted trading authority. The customer and Arrambide mutually agreed to cease the algorithmic trading activity in June of 2017. Subsequently, on multiple dates in September 2017, one of the contractors Arrambide hired to test and use the trading algorithm utilized the Tag 50 user ID to execute prearranged trades on the Globex electronic trading platform in February 2018 and March 2018 E-mini Crude Oil futures contracts for the purpose of transferring equity to the contractor’s personal account from the customer account over which Arrambide previously had been granted trading authority.

The Panel concluded that Arrambide thereby violated NYMEX Rule 576.

PENALTY:

In accordance with the settlement offer, and after considering that Arrambide reimbursed the affected customer $10,550, the full amount of equity transferred from the customer’s account, the Panel ordered Arrambide to pay a fine of $2,500 to the Exchange.