NOTICE OF DISCIPLINARY ACTION

FILE NO.:

NYMEX 10-03-BC

CLERK:

John Martin
 

(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 the Exchange either in his own name or in an account in which he has a direct or indirect interest.
 

(LEGACY) EXCHANGE RULE:

8.55 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:

The New York Mercantile Exchange took final disciplinary action against John Martin (“Martin”), a former clerk who was registered to a Member of the NYMEX Division. On April 12, 2011, the NYMEX BCC Hearing Panel Chair held that Martin failed to file an answer to the Charging Memorandum, and that by failing to answer, all the charges against Martin are deemed admitted and Martin’s right to a hearing on the charges is deemed waived. After a hearing on April 26, 2011, the NYMEX BCC Panel (the “Panel”) found that on November 29 and 30, 2005, Martin engaged in prohibited clerk trading of NYMEX futures for his personal account. These trades resulted in ill-gotten gains for Martin of $2,000. In so doing, the Panel found Martin violated legacy NYMEX Rule 6.30(B)(4) and legacy Exchange Rule 8.55(A)(18).

PENALTY:

In accordance with its findings, the Panel ordered that Martin (i) pay a fine to the Exchange in the amount of $50,000; (ii) disgorge profits in the amount of $2,000; (iii) accept a bar from reapplication to the Exchange, which includes, (a) access to, and the ability to work in any capacity on, any CME Group Exchange Trading Floor, and (b) direct access to CME Group electronic trading and clearing platforms for a period of five (5) years from the later of the effective date of the NFA 9.11 Notice for this case or the date on which the sanction amounts ordered in this case are paid in full; and (iv) agree to the entry of an order to cease and desist from subsequent similar rule violations. This decision became final on May 4, 2011 and effective on June 7, 2011.

EFFECTIVE DATE:

June 7, 2011