NOTICE OF DISCIPLINARY ACTION

MEMBER:

NIC HOLDING CORP.

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 NIC Holding Corp. (“NIC”) presented at a hearing on April 29, 2021, in which NIC neither admitted nor denied the rule violation upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“BCC”) found that, on trade date January 15, 2021, NIC held a futures equivalent long position of 5,050 February 2021 Light Sweet Crude Oil Futures (“FEB21 CL”) contracts, which was 2,050 contracts, or 68.33%, over the standard expiration month position limit in effect for trade date January 15, 2021. On January 15, 2021, NIC liquidated its overage position, resulting in profits of $18,500.

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

PENALTY:

In accordance with the settlement offer, the Panel ordered NIC to pay a fine to the Exchange in the amount of $30,000 and to disgorge profits in the amount of $18,500.