NOTICE OF DISCIPLINARY ACTION

MEMBER:

EOX Holdings LLC

NYMEX RULE:

Rule 432 General Offenses (in part)

It shall be an offense:

W. for a Member to fail to diligently supervise its employees and agents in the conduct of their business relating to the Exchange.

Rule 526 Block Trades (in part)

The Exchange shall designate the products in which block trades shall be permitted and determine the minimum quantity thresholds for such transactions.

CME Group Market Regulation Advisory Notice RA1908-5R, RA1916-5 and RA2002-5:

Block Trade Submission Requirements to CME Clearing (Section 7 in Part)

The execution time of a block trade is the time that the trade is consummated, which is the time that the parties agree to the trade in principle. In that regard, spread block trades are deemed consummated at the time the parties agree to the differential or combination price, not the time the leg prices are determined. Market participants must accurately report the execution time of the block trade. The reporting of inaccurate execution times may result in disciplinary action

FINDINGS:

Pursuant to an offer of settlement in which EOX Holdings LLC (“EOX”) neither admitted nor denied the rule violations upon which the penalty is based, on September 13, 2021, a Panel of the NYMEX Business Conduct Committee (“BCC Panel”) found that during the time period of December 2019 to May 2020, EOX misreported the execution times for multiple block trades in various Natural Gas, Crude Oil and Refined Energy Products futures and options contracts and also misreported spread block trades as separate outright trades to the Exchange on one or more occasions. The BCC Panel further found that EOX failed to properly advise and train its brokers as to relevant Exchange rules and Market Regulation Advisory Notices (“MRANs”) in a manner sufficient to ensure compliance with the Exchange’s block trade reporting rules.

The BCC Panel found that as a result of the foregoing, EOX violated Rules 432.W. and 526.

PENALTY:

In accordance with the settlement offer, the BCC Panel ordered EOX to pay a $85,000 fine.