• NOTICE OF DISCIPLINARY ACTION

      • #
      • NYMEX 18-1004-BC
      • Effective Date
      • 14 October 2019
    • NON-MEMBER:

      DAVID SMITH

      RULE VIOLATION: EXCHANGE 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.

      FINDINGS:

      Pursuant to an offer of settlement that David Smith (“Smith”) presented at a hearing on October 10, 2019, in which Smith neither admitted nor denied the rule violation upon which the below penalty is based, a Panel of the NYMEX Business Conduct Committee (“BCC Panel”) found that, between January 2018 and July 2018, Smith engaged in disruptive trading activity in the Crude Oil Futures contract market by entering orders without the intent to trade. Specifically, the Panel found that Smith typically entered 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, Smith violated Exchange Rule 575.A.

      PENALTY:

      In accordance with the settlement offer, the BCC Panel ordered Smith to pay a monetary fine in the amount of $45,000, disgorge profits in the amount of $500, and to serve a 15 business day 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 October 14, 2019 through, and including, November 1, 2019.