NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

Massar Capital Management, LP

EXCHANGE RULES:

Rule 432 – GENERAL OFFENSES (in part)

It shall be an offense:

Q. to commit an act which is detrimental to the interest or welfare of the Exchange or to engage in any conduct which tends to impair the dignity or good name of the Exchange;

…

W. for any party to fail to diligently supervise its employees and agents in the conduct of their business relating to the Exchange;

FINDINGS:

Pursuant to an offer of settlement in which Massar Capital Management LP (“Massar”) neither admitted nor denied the Rule violations or factual findings upon which the penalty is based, on July 16, 2024, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that on September 6, 2022, a Massar employee failed to properly escalate or correct a technical issue with its order management system that impacted Massar’s automated trading system (“ATS”). As a result, during a nine-minute period on September 7, 2022, three instances of Massar’s order management system traded simultaneously across a 546 tick range, leading the ATS to execute trades for more contracts than initially intended. The ATS’s attempts to rebalance ultimately resulted in over 11,000 contracts being traded, contributing to price and volume aberrations in the OCT22 Nat Gas market.

The Panel further found that Massar, through its employees, failed to diligently supervise its ATS in a manner sufficient to ensure compliance with relevant Exchange Rules and Market Regulation Advisory Notices.

The Panel found that as a result of the foregoing, Massar violated NYMEX Rules 432.Q. and 432.W.

PENALTY:

In accordance with the settlement offer, the Panel ordered Massar to pay a $135,000 fine.