XR TRADING LLC
NYMEX RULE: RULE 562. POSITION LIMIT VIOLATIONS
Any positions in excess of those permitted under the rules of the Exchange shall be deemed position limit violations.
Pursuant to an offer of settlement XR Trading LLC (“XR Trading”) presented at a hearing on October 10, 2019, in which XR Trading neither admitted nor denied the rule violation upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“BCC”) found that, during intraday trading on trade date July 26, 2019, XR Trading held a futures long position of 1,398 contracts in August 2019 Henry Hub Natural Gas Futures (“AUG19 NG”), which was 398 contracts, or 39.80%, over the standard expiration month limit, which went into effect at the close of business on July 25, 2019 and remained in effect through July 29, 2019.
The Panel found that as a result, XR Trading violated Rule 562.
In accordance with the settlement offer, the Panel ordered XR Trading to pay a fine to the Exchange in the amount of $20,000.