NYMEX RULE: RULE 575.A. DISRUPTIVE PRACTICES PROHIBITED
No person shall enter or cause to be entered an order with the intent, at the time of order entry, to cancel the order before execution or to modify the order to avoid execution.
Pursuant to an offer of settlement that Nicholas Murphy (“Murphy”) presented at a hearing on August 28, 2019, in which Murphy neither admitted nor denied the findings or conclusions or any rule violation upon which the below penalty is based, a Panel of the NYMEX Business Conduct Committee (“BCC Panel”) found that, during January 2018, Murphy engaged in disruptive trading activity in various NYMEX Energy Futures markets, including the RBOB Gasoline and NY Harbor ULSD Futures markets, by entering orders without the intent to trade. Specifically, the Panel found that Murphy typically entered layered multiple larger orders on one side of the market and then cancelled them after resting smaller orders on the opposite side of the book were executed.
The BCC Panel found that, as a result, Murphy violated NYMEX Rule 575.A.
In accordance with the settlement offer, the BCC Panel ordered Murphy to pay a monetary fine in the amount of $65,000, disgorge profits in the amount of $41,418, and to serve a three-week trading suspension from access to any trading floor owned or controlled by CME Group and from direct and indirect access to any designated contract market, derivatives clearing organization or swap execution facility owned or controlled by CME Group. The suspension shall run from August 30, 2019 through, and including September 20, 2019.