NOTICE OF SUMMARY ACTION

FILE NO.:

RSRH-19-5544

MEMBER FIRM:

Morgan Stanley Capital Group Inc. 

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.

FINDINGS:

On two occasions in July 2019, Morgan Stanley Capital Group Inc. did not report a block trade in a timely manner to the Exchange. These block trades were executed in August 2019 Mont Belvieu Butan Futures, October 2019 Mont Belvieu Butan Futures, November 2019 Mont Belvieu Butan Futures, December 2019 Mont Belvieu Butan Futures, and June 2020 RBOB Gasoline Futures.  

PENALTY:

On September 16, 2019, pursuant to Rule 512, a fine in the amount of $1,000 was assessed against Morgan Stanley Capital Group Inc. for its violation of NYMEX Rule 526, and NYMEX Rule 526.F.