NOTICE OF DISCIPLINARY ACTION

FILE NO.:

NYMEX 10-07545-BC

NYMEX MEMBER:

Robert Adelstein 
 

EXCHANGE RULES:

432. General Offenses

It shall be an offense:

B. to engage in fraud, bad faith, or in conduct or proceedings inconsistent with just and equitable principles of trade

533. Simultaneous Buy and Sell Orders for Different Beneficial Owners (in part)

A member who is in possession of both buy and sell orders for different beneficial owners for the same product and expiration month, and, for a put or call option, the same strike price, may execute such orders for and directly between such beneficial owners provided that in pit trading, a member executing such orders shall first bid and offer by open outcry three times at the same price, stating the number of contracts, and, thereafter, if neither the bid nor the offer is accepted, the orders may be matched in the presence, and with the approval, of a designated Exchange official.

FINDINGS:

Pursuant to an offer of settlement Robert Adelstein (“Adelstein”) presented at a hearing on November 8, 2012, in which Adelstein neither admitted nor denied the rule violations upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“BCC”) found that, on two days in February 2009, Adelstein, while serving as a broker on the NYMEX trading floor, executed Heating Oil spread cross trades for different beneficial owners without properly bidding and offering the orders three times by open outcry before matching the orders.

The Panel found that as a result, Adelstein violated NYMEX Rules 432.B and 533.

PENALTY:

In accordance with the settlement offer, the Panel ordered Adelstein to pay a fine to the Exchange in the amount of $10,000.

EFFECTIVE DATE:

November 12, 2012