RULE VIOLATIONS: Rule 432. GENERAL OFFENSES
It shall be an offense to:
B.2. engage in conduct or proceedings inconsistent with just and equitable principles of trade.
Q. 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.
Pursuant to an offer of settlement in which Igor Oystacher (“Oystacher”) neither admitted nor denied the rule violations or related findings upon which the penalty is based, on November 25, 2014, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that Oystacher is subject to the jurisdiction of the Exchange pursuant to NYMEX Rules 400 and 402 as the conduct at issue occurred while he was a member of the Exchange.
The Panel also made the following findings: (1) on several dates between December 2010 and July 2011, Oystacher entered bids and offers in Crude Oil futures contracts in such a manner so as not to have the requisite intent to trade at the time of order entry. These bids and offers were subsequently cancelled by Oystacher; and (2) in several instances during the time period in question Oystacher placed 50-lot iceberg order showing 1-lot at or near the best bid/offer on one side of the market and subsequently placed multiple 50-lot non-iceberg orders on the opposite side of the market, also at or near the best bid/offer. Once trading ceased on his iceberg order, the orders on the opposite side of the market were completely cancelled by Oystacher, in many cases less than a second after they were entered.
In determining that the non-iceberg orders were entered without the requisite intent to be traded, the Panel considered numerous factors, including the significant imbalance created by Oystacher’s 50-lot non-iceberg orders, the percentage of large orders cancelled, and the exposure time of the cancelled orders.
The Panel concluded that by engaging in the foregoing conduct, Oystacher violated NYMEX Rules 432.B.2. (to engage in conduct or proceedings inconsistent with just and equitable principles of trade) and 432.Q. (to engage in 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).
In accordance with the offer of settlement, the Panel:
1. fined Oystacher $150,000 in connection with this case and companion case COMEX 11-08380 ($100,000 of which is allocated to NYMEX); and
2. ordered Oystacher to serve a one month bar from: membership privileges on any CME Group Inc. exchange; access to all CME Group Inc. trading floors; and 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 November 28, 2014, through and including December 28, 2014.
November 28, 2014