NOTICE OF DISCIPLINARY ACTION

FILE NO.:

NYMEX 10-7443-BC

NON-MEMBER:

DOMINICK TERRONE

NYMEX RULE VIOLATIONS:

NYMEX LEGACY RULE 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.
(2) to be guilty of fraud or any act of bad faith;
(3) to be guilty of any dishonest conduct; and
(18) to commit an act which is substantially detrimental to the interests or welfare of the Exchange.

FINDINGS:

Pursuant to an offer of settlement Dominick Terrone (“Terrone”) presented at a hearing on June 26, 2013, in which Terrone neither admitted nor denied the rule violations upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“BCC”) found that at the time of the conduct, Terrone was a NYMEX floor clerk and thus subject to the jurisdiction of the Exchange pursuant to Legacy Rule 101.01A, and that on 33 occasions in February 2008 and March 2008 in his capacity as a clerk on the floor of the Exchange, Terrone facilitated the manipulation of the settlement prices in Platinum and Palladium spot month contracts by assisting in his customer’s efforts to obtain artificially high fill prices during the two minute close.

The Panel found that, as a result, Terrone violated Legacy NYMEX Rules 8.55(A)(2),(3) and (18).

PENALTY:

In accordance with the settlement offer, the Panel ordered Terrone to be permanently banned from: 1) any CME Group exchange membership and privileges; 2) direct and indirect access and use of any CME Group trading floor, electronic trading or clearing platform owned or operated by any CME Group exchange; and 3) affiliation with, employment by, or association with a broker association, guaranteed introducing broker, Member or affiliate of a Member registered with any CME Group exchange, trading platform or clearing platform in connection with Exchange related business.

EFFECTIVE DATE:

June 28, 2013