Centaurus Advisors LLC
NYMEX RULE VIOLATIONS:
Rule 562. Position Limit Violations
Any positions in excess of those permitted under the rules of the Exchange shall be deemed position limit violations.
Rule 432. General Offenses
It shall be an offense:
S. to fail, after hearing, to comply with an order of the Board, Exchange
Staff, or any hearing committee.
Pursuant to an offer of settlement in which Centaurus Advisors LLC (“Centaurus”) neither admitted nor denied the rule violations upon which the penalty is based and after voluntarily submitting itself to the jurisdiction of the Exchange for purposes of resolving this matter, on December 20, 2011, a panel of the NYMEX Business Conduct Committee (the “Panel”) found that on January 21, 2011, the CME Group Inc. Market Regulation Department (“Market Regulation”) ordered Centaurus not to increase its aggregate short May 2011 Henry Hub Natural Gas futures position pursuant to NYMEX Rule 560 (“Position Accountability”).
The Panel further found that on January 26, 2011, Centaurus violated Market Regulation’s imposed position limit by establishing an aggregate intraday peak position that exceeded the “do not increase” order by 0.11%. This was Centaurus’ fourth position limit rule violation in a 24 month period and further violated a previous order by the Business Conduct Committee to cease and desist from violating Exchange rules issued January 6, 2011.
The Panel found that in so doing, Centaurus violated NYMEX Rule 562 and Rule 432.S.
In accordance with the settlement offer, the Panel ordered Centaurus to pay a fine of $75,000.
December 22, 2011