NOTICE OF DISCIPLINARY ACTION

FILE NO.:

NYMEX 09-06-BC
 

CLERK:

CHRISTOPHER LEON

(LEGACY) NYMEX RULE:

6.30 Access to the Trading Floor

(B)(4) No floor employee of a Member may trade in any commodity contract traded on or cleared by this Exchange either in his own name or in an account in which he has a direct or indirect interest.
(LEGACY) EXCHANGE RULE:

8.55(A)(18) Classification of Offenses

(A) Major Offenses – No Member, Member Firm, or any employee of the foregoing shall commit a violation of any of the following rules, which shall be deemed major offenses of the Exchange.

(18) to commit an act which is substantially detrimental to the interests or welfare of the Exchange.
 

FINDINGS:

On December 18, 2009, at a hearing of the NYMEX Business Conduct Committee, counsel for the Market Regulation Department presented its case against Christopher Leon. On the basis of all the testimony and evidence presented at the hearing by Market Regulation, a panel of the Business Conduct Committee (“BCC Panel”) found that, during the relevant time period of July 16, 2006 through to September 18, 2006, Christopher Leon was a phone clerk on the NYMEX trading floor and that he traded in his own name in NYMEX futures contracts traded or cleared by NYMEX. In addition, the BCC Panel found that Christopher Leon allowed his employer’s client to put profitable trades in NYMEX contracts into his own personal account as a means of compensation. Accordingly, the BCC Panel found that Christopher Leon violated legacy NYMEX Rule 6.30(B)(4) and legacy Exchange Rule 8.55(A)(18) and hereby grants Market Regulation’s motion as proposed to issue an order against Leon.

PENALTY:

Based upon the record in this matter and the findings and conclusions set forth above, the BCC Panel hereby orders that Christopher Leon: (1) pay a fine to the Exchange in the amount of $115,000; (2) accept a suspension for one (1) year not to apply for membership at any CME Group Exchange, not to access and use the trading floor or electronic trading or clearing platform owned or operated by a CME Group Exchange or to be affiliated with, employed by, or have any interest in, or associate with, a broker association, guaranteed introducing broker, member or affiliate of a member registered with any CME Group Exchange, trading platform or clearing platform; and (3) cease and desist from subsequent similar rule violations. The decision became final on August 27, 2010 and effective on September 7, 2010.

Mr. Leon’s suspension shall run from September 7, 2010 through September 7, 2011. 
 

EFFECTIVE DATE:

September 7, 2010