NOTICE OF DISCIPLINARY ACTION

FILE NO.:

NYMEX 10-01-BC

MEMBER:

Michael Cokeley (MICK) 

(LEGACY) NYMEX RULES:

6.31 Trading Prohibition of Certain Persons

(C) A floor clerk, messenger, Authorized Terminal User who is not also designated as an Electronic Trader or User Agent who is not also designated as a User. 

(LEGACY) EXCHANGE RULES:

8.62 Clerk Registration, Trading Badges, Access to the Trading Floor & Disciplinary Jurisdiction

(A) Registration

(1) Members and Member Firms shall register a clerk, whose duties have been defined under Rule 8.58, with the Membership Department on a form provided by the Exchange (“Application”), which must be executed by the employer of the clerk and the clerk, prior to the clerk being granted access to the Exchange trading floor (“Trading Floor”).

FINDINGS:

The New York Mercantile Exchange (“NYMEX”) took final disciplinary action against Michael Cokeley (also known as Badge “MICK” and hereinafter “Cokeley”), a Member of the NYMEX Division of the New York Mercantile Exchange. On January 11, 2011, a hearing was held before a Panel of the NYMEX Business Conduct Committee (“Panel”). The Panel found that, based upon the evidence presented, Cokeley engaged in executing trades for the account of his clerk on four trading sequences on three trade dates (October 12, 13, and 17, 2006), in violation of legacy NYMEX Rule 6.31(C). Further, the Panel found that Cokeley failed to register his clerk during a six-week period in 2006, in violation of legacy Exchange Rule 8.62(A)(1).

PENALTY:

Based upon the record in this matter and the findings and conclusions set forth above, the BCC panel ordered that Cokeley: (i) pay a fine to the Exchange in the amount of $7,500; (ii) pay customer restitution in the amount of $378; (iii) cease and desist from future violations of legacy NYMEX Rule 6.31(c) and legacy Exchange Rule 8.62(A)(1) and similar rule violations; and (iv) not reapply for membership, or in any other capacity, at the Exchange for a period of three (3) months. This decision became final on March 9, 2011 and effective on April 12, 2011. 

EFFECTIVE
DATE:

April 12, 2011