NOTICE OF DISCIPLINARY ACTION

FILE NO.:

NYMEX-10-07546-BC

NON-MEMBER:

WILLIAM GLASS 
 

EXCHANGE RULES:

NYMEX RULE 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;

Q. to commit an act which is detrimental to the interest or welfare of the Exchange or to engage in any conduct which tends to impair the dignity or good name of the Exchange;

T. to engage in dishonorable or uncommercial conduct;

FINDINGS:

On February 7, 2012, a Panel of the New York Mercantile (“NYMEX”) Probable Cause Committee charged non-member William Glass (“Glass”) with violating NYMEX Rules 432.B., 432.Q., and 432.T. based on allegations that on July 31, 2009, he intentionally acted in a fraudulent manner to hide Crude Oil trades from his FCM that resulted in a loss of approximately $1.6 million to the FCM, which Glass never repaid, and the cessation of the FCM’s business operations.

On April 9, 2012, a Hearing Panel Chair of the NYMEX Business Conduct Committee (“BCC”) entered an order finding that Glass failed to answer the charges against him. The Hearing Panel Chair further ordered that Glass was deemed to have admitted the charges issued and waived his right to a hearing on the merits of the charges.

On May 15, 2012, a penalty hearing was held before a panel of the NYMEX BCC (“BCC Panel”) which found that Glass had committed the violations charged.

PENALTY:

In accordance with NYMEX Rule 402.D. (Actions Against Non-Members), the BCC Panel permanently barred Glass from (i) applying for Membership at any CME Group Exchange; (ii) direct or indirect access to any trading or clearing platform owned or controlled by the CME Group, Inc.; and (iii) access to any trading floor owned or operated by any CME Group, Inc. exchange.

EFFECTIVE DATE:

June 18, 2012