NOTICE OF DISCIPLINARY ACTION

FILE NO.:

NYMEX 10-07815-BC 

NYMEX MEMBER:

JOHN THOMAS PHILLIPS (FLPS) 

EXCHANGE 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. 

FINDINGS:

Pursuant to an offer of settlement John Thomas Phillips (“Phillips”) presented at a hearing on September 19, 2012, in which Phillips neither admitted nor denied the findings or rule violation upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that on November 4, 2010, during the post-close trading session on the NYMEX trading floor, Phillips, failed to present a customer order in a manner necessary to ensure that all market participants had an opportunity to participate in the trade. This constituted conduct inconsistent with just and equitable principles of trade.

The Panel found that as a result, Phillips violated NYMEX Rule 432.B.

PENALTY:

In accordance with the settlement offer, the Panel ordered Phillips to pay a fine to the Exchange in the amount of $15,000 and to serve a 5 business day suspension of his (i) membership privileges; (ii) access to any CME Group Inc. trading floor; and (ii) direct and indirect access to all electronic trading and clearing platforms owned or controlled by CME Group Inc., including CME Globex. The suspension shall run from September 28, 2012 through October 4, 2012, inclusive.

EFFECTIVE DATE:

September 21, 2012