NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

Marex IPG Group

NYMEX RULE VIOLATION:

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. The following shall govern block trades:

F. 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.

CME Group RA2204-5Block Trade Submission (Section 7.c., In Part)

The execution 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 Marex IPG Group neither admitted nor denied the rule violation or factual findings upon which the penalty is based, on June 12, 2024, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that in January 2023, Marex submitted multiple block trades with inaccurate execution times and also failed to report multiple block trades to the Exchange within the required time period following execution in various RBOB, Natural Gas and Crude Oil futures contracts.

The Panel found that as a result of the foregoing, Marex violated NYMEX Rules 526 and 526.F.

PENALTY:

In accordance with the settlement offer, the Panel ordered Marex to pay a $45,000 fine.