NOTICE OF DISCIPLINARY ACTION

FILE NO.:

NYMEX 10-11-BC

CLERK:

Mark Jagai

(LEGACY) NYMEX RULES:

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 RULES:

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.

(3) to be guilty of any dishonest conduct

FINDINGS:

The New York Mercantile Exchange took final disciplinary action against Mark Jagai (hereinafter “Jagai”), a former clerk who was registered to a Member of the NYMEX Division. On February 22, 2011, the NYMEX BCC Hearing Panel Chair held that Jagai failed to file an answer to the Charging Memorandum, and that by failing to answer, all the charges against Jagai are deemed admitted and Jagai’s right to a hearing on the charges are deemed waived. After a hearing on April 13, 2011, the NYMEX BCC Panel (the “Panel”) found that on January 24, 2007, Jagai, while functioning in a clerical capacity for a NYMEX Member, engaged in prohibited clerk trading of NYMEX Heating Oil futures contracts for a Member’s account. The Panel found that in so doing, Jagai violated the following legacy rules: NYMEX Rule 6.30(B)(4), and Exchange Rule 8.55(A)(3).

PENALTY:

In accordance with its findings, the Panel ordered that Jagai (i) pay a fine to the Exchange in the amount of $15,000; (ii) be barred 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 one (1) year 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 and ordered under NFA BASIC posting NYME 07-29 Mark Jagai are paid in full; and (iii) cease and desist from subsequent similar rule violations. This decision became final on April 14, 2011 and effective on May 17, 2011.

EFFECTIVE
DATE:

May 17, 2011