NOTICE OF DISCIPLINARY ACTION

FILE NO.:

NYMEX 09-10-BC
 

MEMBER:

CARLO VOLPE (CEE)

(LEGACY) NYMEX RULES:

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:

6.61 Pre-Arranged Trades

Pre-arranged trades are prohibited.
 

(LEGACY) EXCHANGE RULE:

8.55 Classification of Offenses

(B) Minor 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 minor offenses of the Exchange.

(2) to engage in conduct inconsistent with just and equitable principles of trade;
 

FINDINGS:

Pursuant to an offer of settlement in which Carlo Volpe (also known as broker “CEE”) neither admitted nor denied the findings or any rule violations, the panel of the NYMEX Business Conduct Committee (hereinafter known as the “BCC Panel”), found that Carlo Volpe, on December 22, 2006, entered into, with other brokers, certain non-competitive, pre-arranged trades and offset opposite customer orders withheld by other brokers, without bidding or offering in the ring, which thus enabled Carlo Volpe to execute a risk-free round turn trade opposite those brokers’ customers, in violation of legacy NYMEX Rules 6.05(A), 6.61, and legacy Exchange Rule 8.55(B)(2). On April 9, 2010, Carlo Volpe presented a settlement offer to the BCC Panel that was not supported by the Market Regulation Department. The BCC Panel accepted the settlement offer.

PENALTY:

In accordance with the settlement offer, the BCC Panel hereby orders that Carlo Volpe: (1) pay a fine to the Exchange in the amount of $4,000; and (2) cease and desist from subsequent similar rule violations. The decision became final on August 26, 2010 and effective on September 6, 2010. 
 

EFFECTIVE DATE:

September 6, 2010