NOTICE OF DISCIPLINARY ACTION

FILE NO.:

NYMEX 09-15-BC
 

MEMBER:

STEVEN GRIECO (VETS)

(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:

Pursuant to an offer of settlement in which Steven Grieco (also known as Broker “VETS”), 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 on numerous trade dates between October 24 and December 27, 2007, Steven Grieco, who was a member on NYMEX, permitted his brother, Guy Grieco, an NFA-registered introducing broker and a clerk registered to another member, to allocate NYMEX future trades from that other member’s suspension account to Steven Grieco’s personal trading account; the trades in question were executed in conjunction with customer orders and selectively allocated to Steven Grieco’s personal trading account from fills for the customer orders, along with profitable offsetting trades, in violation of legacy Exchange Rule 8.55(A)(18). On May 13, 2010, Steven Grieco and the Market Regulation Department presented a joint settlement offer to the BCC Panel, with respect to violations of Exchange Rules. The BCC Panel accepted the settlement offer.

PENALTY:

In accordance with the settlement offer, the BCC Panel hereby orders that Steven Grieco: (1) pay a fine to the Exchange in the amount of $32,000; (2) suspension of Steven Grieco’s membership privileges, including but not limited to, access to any CME Group trading floor and direct access to any CME Group electronic trading or clearing platforms for a period of two weeks from the effective date of the NFA 9.11 Notice; and (3) an order to cease and desist from subsequent similar rule violations. The decision became final on August 4, 2010 and effective on August 11, 2010.

His suspension shall run from August 11, 2010 to August 25, 2010.
 

EFFECTIVE DATE:

August 11, 2010