• NOTICE OF DISCIPLINARY ACTION

      • #
      • COMEX-12-9162-BC
      • Effective Date
      • 02 August 2013
    • FILE NO.:

      COMEX 12-9162-BC

       

      MEMBER:

      GLENCORE LTD

       

      EXCHANGE RULE:

      562. POSITION LIMIT VIOLATIONS

      Any positions in excess of those permitted under the rules of the Exchange shall be deemed position limit violations.

       

      FINDINGS:

      Pursuant to an offer of settlement Glencore Ltd (“Glencore”) presented at a hearing on July 31, 2013, in which Glencore neither admitted nor denied the rule violation upon which the penalty is based, a Panel of the COMEX Business Conduct Committee (“BCC”) found that it had jurisdiction over Glencore pursuant to Exchange Rules 400 and 402 as the conduct occurred while Glencore was a COMEX member and that at the close of business on trade date November 29, 2012, Glencore held a position of 3,130 short contracts in the DEC12 Copper contract which was 36.1% over its Exchange approved expiration month hedge exemption level of 2,300 short contracts. Glencore subsequently liquidated its overage position resulting in profits of $66,200.

       

      The Panel found that as a result, Glencore violated Rule 562.

       

      PENALTY:

      In accordance with the settlement offer, the Panel ordered Glencore to pay a fine to the Exchange in the amount of $25,000 and to disgorge profits in the amount of $66,200.

       

      EFFECTIVE DATE:

      August 2, 2013