NYMEX Rule 9.36 addresses the penalties associated with violations of the Exchange's speculative position limits. The amendments to this Rule implement a tiered penalty structure for any second speculative position limit violation within 12 months of a previous violation. This tiered structure consists of automatic penalties for a second violation of the rule: a $5,000 fine for a violation up to 25% above the applicable limit, and a $15,000 fine for a violation in excess of 25% above the applicable limit.
Additional amendments to the Rule clarify any potential ambiguity with respect to: 1) fines applicable to violations by a non-Member customer; 2) the assessment by the Exchange of the non-Member customer's Clearing Member for such fines; and 3) the manner in which the Exchange may assess multiple Clearing Members for a non-Member customer violation carried across those Clearing Members. Also included are various non-substantive housekeeping amendments. These changes will be made effective on July 29, 2008.
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