NOTICE OF DISCIPLINARY ACTION

FILE NO.:

NYMEX 10-7443-BC

NON-MEMBER:

RICHARD TRIFOGLIO

NYMEX RULE VIOLATIONS:

NYMEX LEGACY RULE 6.05 TRANSACTIONS, BIDS, AND OFFERS ON THE TRADING FLOOR

(A) Except as otherwise specifically provided in the Bylaws and Rules, all purchases, sales, bids and offers for futures and options contracts:
(1) shall be executed openly and competitively by open outcry in the appropriate trading ring during the authorized hours of trading

NYMEX LEGACY RULE 6.61 PRE-ARRANGED TRADES

Pre-arranged trades are prohibited.

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.
(3) to be guilty of any dishonest conduct;
(7) to engage in wash trading or accommodation trading.

FINDINGS:

Pursuant to an offer of settlement Richard Trifoglio (“Trifoglio”) presented at a hearing on June 26, 2013, in which Trifoglio 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, Trifoglio was a COMEX member and thus subject to the jurisdiction of NYMEX pursuant to Legacy Rule 101.01A, and that on five occasions in March 2008 while acting as a broker on the Floor of the Exchange, Trifoglio accommodated other brokers in the Palladium and Platinum ring in the execution of noncompetitive trades by buying/selling for his account opposite another broker, thereby allowing the broker to take the opposite side of his customer indirectly.

The Panel found that as a result, Trifoglio violated Legacy NYMEX Rules 6.05(A)(1) (Transactions, Bids and Offers on the Trading Floor), 6.61 (Pre-Arranged Trades), 8.55(A)(3) (Dishonest Conduct) and 8.55(A)(7) (Wash or Accommodation Trades).

PENALTY:

In accordance with the settlement offer, the Panel ordered Trifoglio to pay a fine in the amount of $50,000 and to disgorge profits in the amount of $120,800. The Panel also suspended Trifoglio from all direct or indirect access to any trading floor or electronic trading or clearing platform owned or operated by CME Group Inc., including Globex, for a period of 3 weeks. The suspension will run from June 28, 2013 through July 19, 2013.

EFFECTIVE DATE:

June 28, 2013