NOTICE OF SUMMARY ACTION

FILE NO.:

NYMEX RSRH-20-5813

MEMBER FIRM:

EP Derivatives, 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-2002-5 (in part)

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

FINDINGS:

On 7 occasions in April 2020, EP Derivatives, LLC did not report a block trade with an accurate execution time to the Exchange. These block trades were executed in May 2020, June 2020, July 2020, September 2020, and December 2020 Light Sweet Crude Oil Put and Call Options, and June 2020 Light Sweet Crude Oil European Financial Option Put and Call Options.  

PENALTY:

On June 23, 2020, pursuant to Rule 512, a fine in the amount of $1,500 was assessed against EP Derivatives, LLC for its violation of NYMEX Rule 526, and NYMEX Rule 526.F.

EFFECTIVE DATE:

July 10, 2020