Notice to Members
Notice No. 135 03/24/2005
Reminder - Major Offense "Wash/Accommodation Trades" and NYMEX Europe Incentive Programs
The Exchange wishes to remind all members that as prescribed in NYMEX Rule 8.55(A)(7), "to engage in wash trading or accommodation trading" is a major offense. Exchange Rule 8.55 states: "Major offenses shall be punishable by one or more of the following: expulsion, suspension from all or some rights and privileges of membership, the ability to hold a permit, Electronic Trading Privileges, employment on the Exchange Floor, or employment for the purposes of entering orders on NYMEX ACCESS®, employment for the purposes of entering orders on NYMEX ClearPortsm, a fine of not more than $1,000,000, cease and desist order, or an order directing restitution to any injured person." Further, the Exchange wishes to remind all members that wash trading and accommodation trading may also constitute prearranged trading within Exchange Rule 6.61. Members are requested also to draw this Notice to the attention of their customers in connection with: the Tiered Volume Market Maker Program, the Equity Allocation Volume Incentive Program, the Equity Allocation Open Interest Program, and the Local Incentive Program in relation to the NYMEX Europe Brent Futures Contract (details of each of which were set out in Notices Nos. 112 and 127) All Members are advised that the Exchange will be closely reviewing trading activity in Dublin via its automated electronic surveillance system, as well as floor observations. Any attempt by a participating Member(s) or other Member(s) assisting (accommodating) in attaining volumetric levels as prescribed in the program through wash trading or other noncompetitive trading will constitute serious violation(s) of Exchange rules and will be referred for appropriate disciplinary action.
Should you have any questions or require any further information, please contact exchangeinfo@nymex.com