NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

Murchinson Limited Partnership

NYMEX RULE VIOLATION: 562. POSITION LIMIT VIOLATIONS

Any positions in excess of those permitted under the rules of the Exchange shall be deemed position limit violations.

FINDINGS:

Pursuant to an offer of settlement that Murchinson Limited Partnership (“Murchinson”) presented at a hearing on April 29, 2021, in which Murchinson neither admitted nor denied the rule violation upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that at various points between November 27, 2019 and December 2, 2019, accounts owned or controlled by Murchinson, which were aggregated for the purposes of Exchange position limits, did not adequately reduce their position going into the deliverable spot month and held December 2019 Palladium (DEC19PA) futures equivalent positions that exceeded the spot month position limit of 50 contracts in effect at that time. Specifically, at the close of business on November 27, 2019, Murchinson held an aggregated futures-equivalent long position of 78 DEC19PA contracts, 28 contracts (56%) over the position limit. On November 29, 2019, Murchinson held an aggregated futures-equivalent long position of 57 DEC19PA contracts, 7 contracts (14%) over the position limit. Finally, on December 2, 2019, Murchinson held a futures-equivalent long position of 54 DEC19PA contracts, 4 contracts (8%) over the position limit.

The Panel further found that Murchinson realized a profit of $24,492.00 by reducing the firm’s excess DEC19PA positions.

The Panel found that as a result, Murchinson violated Rule 562.

PENALTY:

In accordance with the settlement offer, the Panel ordered Murchinson to pay a fine to the Exchange in the amount of $40,000 and disgorge profits in the amount of $24,492.00.