NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

NITIN GUPTA

EXCHANGE RULES:

Rule 432. General Offenses (in part)

It shall be an offense:

B.2. to engage in conduct or proceedings inconsistent with just and equitable principles of trade;

Q. to commit an act which is detrimental to the interest or welfare of the Exchange or to engage in any conduct which tends to impair the dignity or good name of the Exchange;

T. to engage in dishonorable or uncommercial conduct.

FINDINGS:

On February 26, 2015, a Panel of the Commodity Exchange (“COMEX”) Probable Cause Committee charged non-member Nitin Gupta (“Nitin”) with violating NYMEX Rules 432.B.2., 432.Q., and 432.T. based on allegations that on multiple trade dates during the time period of February 2013 through April 2013, Nitin engaged in a pattern of activity in which he repeatedly entered large orders for Gold,  Silver, and Copper futures contracts without the intent to trade. Specifically, Nitin entered these orders to encourage market participants to trade opposite his smaller orders that were resting on the opposite side of the book. After receiving a fill on his smaller orders, Nitin would then cancel the large orders.

On July 27, 2015, a Hearing Panel Chair of the COMEX Business Conduct Committee (“BCC”) entered an order finding that Nitin failed to answer the charges against him. The Hearing Panel Chair further ordered that Nitin was deemed to have admitted the charges issued and waived his right to a hearing on the merits of the charges.

On September 9, 2015, a penalty hearing was held before a panel of the COMEX BCC (“BCC Panel”) which found that Nitin had committed the violations charged.

PENALTY:

In accordance with NYMEX Rule 402.B (Sanctions), the BCC Panel ordered Nitin to (1) pay a fine in the amount of $100,000; and (2) be permanently banned from (a) applying for Membership at any CME Group exchange; (b) direct or indirect access to any trading or clearing platform owned or controlled by the CME Group, Inc.; and (c) access to any trading floor owned or operated by any CME Group, Inc. exchange.