NOTICE OF SUMMARY ACTION

FILE NO.:

NYMEX RSRH-22-6781

MEMBER FIRM:

Pan Capital Management LP

NYMEX RULE VIOLATION:

526.F. BLOCK TRADES

Unless otherwise agreed to by the principal counterparties to the block trade, the seller, or, in the case of a brokered transaction, the broker handling the block trade, must ensure that each block trade is reported to the Exchange within the time period and in the manner specified by the Exchange. The report must include the contract, contract month, price, quantity of the transaction, the respective clearing members, the time of execution, and, for options, strike price, put or call and expiration month. The Exchange shall promptly publish such information separately from the reports of transactions in the regular market.

MRAN RA-2204-5 (in part)

Market participants must accurately report the execution time of the block trade.

FINDINGS:

Pan Capital Management LP admitted that on one date in November 2022, that it reported block trades with randomly selected execution times. Thus, each trade time was inaccurately reported to the Exchange. These block trades were executed in December 2022 through December 2025 Henry Hub Natural Gas European Financial Options, December 2022 through December 2025 Henry Hub Natural Gas Futures, March 2023 through December 2025 Henry Hub Natural Gas Look-Alike Penultimate Financial Futures, and December 2022, March 2023, April 2023, December 2023, April 2024, January 2025, March 2025, and April 2025 Henry Hub Natural Gas Look-Alike Last Day Financial Futures.  

PENALTY:

On November 16, 2022, pursuant to Rule 512, a fine in the amount of $10,000 was assessed against Pan Capital Management LP for its violations of NYMEX Rule 526 and NYMEX Rule 526.F.

EFFECTIVE DATE:

December 12, 2022