NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

CITADEL ADVISORS LLC

NYMEX RULE VIOLATION: 562. POSITION LIMIT VIOLATIONS (in part)

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

559.F. CONDITIONAL LIMIT IN NYMEX LAST DAY FINANCIAL NATURAL GAS CONTRACTS

The Market Regulation Department may grant a Conditional limit in Last Day Financial Natural Gas contracts of up to the equivalent of ten thousand (10,000) NYMEX Physical Natural Gas Contracts (NG) during the period that position limits are applicable. Any participant seeking such exemption must agree: (1) not to hold a position in the NG contract during the last three days of trading; (2) provide the Exchange information on the complete book of all positions related to the Henry Hub; and (3) any other information/documentation required by the Exchange.

FINDINGS:

Pursuant to an offer of settlement in which Citadel Advisors LLC (“Citadel”) neither admitted or denied the Rule violation upon which the penalty is based, on September 8, 2022, a Panel of the New York Mercantile Exchange Business Conduct Committee (“Panel”) found that the standard 2,000-lot position limit for the November 2021 Henry Hub Natural Gas Look-Alike Last Day Financial Futures (“NOV21 HH”) contract went into effect at the close of business on October 22, 2021. Prior to the NOV21 HH position limit going into effect, Citadel confirmed it would utilize the Conditional Limit, which permitted Citadel to hold a position of up to 10,000 NOV21 HH futures equivalent contracts as long as the firm did not hold a position in the Henry Hub Natural Gas Futures (NG) contract during the last three days of trading.

On October 26, 2021, Citadel held a futures equivalent position of 2,365 short NOV21 HH contracts, which was 365 contracts (or 18.25%) over the position limit and would be permissible under the granted Conditional Limit. However, Citadel initiated a short November 2021 NG (“NOV21 NG”) position and thereby breached the terms of the Conditional Limit.

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

PENALTY:

In accordance with the settlement offer, the Panel ordered Citadel to pay a fine to the Exchange in the amount of $20,000.