NOTICE OF SUMMARY ACTION

FILE NO.:

RSRH-19-5544

MEMBER FIRM:

Liquidity Energy LLC

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-1906-5 (in part)

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

FINDINGS:

On seven occasions in July 2019, Liquidity Energy LLC did not report a block trade with an accurate execution time to the Exchange. These block trades were executed in August 2019 NY Harbor ULSD Futures, September 2019 Henry Hub Natural Gas Futures, September 2019 Henry Hub Natural Gas Look-Alike Last Day Financial Futures, December 2019 Henry Hub Natural Gas Futures, December 2019 Natural Gas Look-Alike Last Day Financial Futures, May 2020 Henry Hub Natural Gas Look-Alike Last Day Financial Futures, and June 2020 Henry Hub Natural Gas Look-Alike Last Day Financial Futures.

PENALTY:

On September 16, 2019, pursuant to Rule 512, a fine in the amount of $1,000 was assessed against Liquidity Energy LLC for its violation of NYMEX Rule 526 and NYMEX Rule 526.F.