NOTICE OF DISCIPLINARY ACTION

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