NOTICE OF DISCIPLINARY ACTION

FILE NO.:

NYMEX 10-7451-BC 

NON-MEMBER:

RWE Supply & Trading GmbH

NYMEX RULE VIOLATION:

Rule 443. Position Limit Violations
(Revised and Relocated to Rule 562 on November 29, 2010)

The Market Regulation Department and the BCC shall have the authority to enforce the position limit rules of the Exchange. For purposes of this rule, any positions in excess of those permitted under the rules of the Exchange shall be deemed position limit violations. Additionally, any person making a bid or offer that would, if accepted, cause such a person to exceed the applicable position limits shall be in violation of this rule.

FINDINGS:

Pursuant to an offer of settlement in which RWE Supply & Trading GmbH (“RWE”) neither admitted nor denied the findings and after RWE voluntarily submitted itself to the jurisdiction of the Exchange for purposes of resolving this matter, on May 16, 2011, a panel of the NYMEX Business Conduct Committee (the “Panel”) found that on May 26, 2010, a date subject to a 1,000 contract spot month speculative position limit for the Reformulated Gasoline Blendstock for Oxygen Blending (“RBMO”) futures expiring June 2010 contract (“RMB10”), RWE maintained a long RBM10 position in excess of the applicable spot month position limit. At the start of trading on May 26, 2010, RWE was long 1,280 RBM0 contracts, 280 contracts (28%) over the spot month speculative position limit, before selling RBM10 futures and reducing the position back under the limit. RWE’s liquidation of its position in excess of the spot month limit resulted in profits of $32,419.80.

The Panel found that in so doing, RWE violated NYMEX Rule 443 (“Position Limit Violations”).

PENALTY:

In accordance with the settlement offer and its findings, the Panel ordered RWE to: 1) pay a fine to the Exchange in the amount of $25,000; 2) disgorge profits in the amount of $32,419.80; and 3) to Cease and Desist subsequent similar rule violations. This decision became final on May 16, 2011 and effective on May 18, 2011.

EFFECTIVE DATE:

May 18, 2011