NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

ALPHA ACADEMIC LIMITED

EXCHANGE RULES:

RULE 432. GENERAL OFFENSES

It shall be an offense:

G. to prearrange the execution of transactions in Exchange products for the purpose of transferring equity between accounts.

RULE 433. STRICT LIABILITY FOR THE ACTS OF AGENTS

Pursuant to Section 2(a)(1)(B) of the Commodity Exchange Act, and notwithstanding Rule 432.W., the act, omission, or failure of any official, agent, or other person acting for any party within the scope of his employment or office shall be deemed the act, omission or failure of the party, as well as of the official, agent or other person who committed the act.

FINDINGS:

Pursuant to an offer of settlement in which Alpha Academic Limited (“Alpha Academic”) neither admitted nor denied the factual findings or rule violation upon which the action is based, on September 12, 2019, a Panel of the New York Mercantile Exchange (“NYMEX”) Business Conduct Committee (“BCC” or “Panel”) found that during the time period from December 11, 2017 to March 1, 2018, a former Alpha Academic trader prearranged the execution of round-turn transactions in Steel futures contracts between an account owned by Alpha Academic and another account owned by another individual. The purpose of these round-turn transactions was to obtain trade credits from the Exchange’s Steel futures market maker incentive program. As a result of these round-turn transactions, Alpha Academic realized a profit of $3,778.72.

The Panel concluded that, pursuant to Exchange Rule 433, Alpha Academic is strictly liable for the acts of an employee whose conduct the Panel concluded violated NYMEX Rule 432.G.

PENALTY:

In accordance with the settlement offer, the BCC Panel ordered Alpha Academic to disgorge profits in the amount of $3,778.72.