NOTICE OF DISCIPLINARY ACTION

FILE NO.:

NYMEX 06-01-BC

MEMBER:

William J. Fenton (DUKE) 

(LEGACY) NYMEX RULE:

6.05 Transactions, Bids, and Offers on the Trading Floor

(A) Except as otherwise specifically provided in the Bylaws and Rules, all purchases, sales, bids and offers for futures and options contracts:

(1) shall be executed openly and competitively by open outcry in the appropriate trading ring during the authorized hours of trading;

FINDINGS:

On November 13, 2007, a hearing was held before the NYMEX Business Conduct Committee (“BCC Panel”). The Panel found, based upon the evidence presented, that on January 9, 2004 William J. Fenton (“Fenton”) executed a trade of Natural Gas futures contracts opposite a broker’s customer order at a price that the broker changed after the execution of the trade. The Panel found that in so doing, Fenton violated legacy NYMEX Rule 6.05(A)(1). 

On May 26, 2011 an Appellate Panel of the CME Group Board of Directors upheld the finding by the BCC Panel that a violation of NYMEX Rule 6.05(A) occurred and the imposition of the penalties must stand.

PENALTY:

Based upon the record in this matter and the findings and conclusions set forth above, the Panel ordered that Fenton: (i) pay a fine to the Exchange in the amount of $5,000; (ii) serve a one (1) week suspension from trading on all NYMEX trading venues; and (iii) agree to the entry of an order to Cease and Desist from future violations of legacy NYMEX Rule 6.05(A)(1), and similar rule violations. This decision became final on May 26, 2011 and effective on June 13, 2011.
 

EFFECTIVE DATE:

June 13, 2011