NOTICE OF DISCIPLINARY ACTION

FILE NO.:

NYMEX 11-08423-BC

NON-MEMBER:

VERMILLION ASSET MANAGEMENT, LLC

NYMEX RULE VIOLATION:

562. POSITION LIMIT VIOLATIONS

Any positions in excess of those permitted under the rules of the Exchange shall be deemed position limit violations.

FINDINGS:

Pursuant to an offer of settlement Vermillion Asset Management, LLC (“Vermillion”) presented at a hearing on May 30, 2012, in which Vermillion neither admitted nor denied the rule violation upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“BCC”) found that Vermillion voluntarily submitted itself to the jurisdiction of the BCC for purposes of settling this matter and that on July 18, 2011, Vermillion inadvertently maintained an open, end of day AUG11 Crude position of 4,275.35 long contracts, which was 1,275.35 contracts (42.5%) over the 3,000 contract spot month position limit in effect for trade dates July 18, 19, and 20, 2011 (“the spot period”).

The Panel found that as a result, Vermillion violated Rule 562.

PENALTY:

In accordance with the settlement offer, the Panel ordered Vermillion to pay a fine to the Exchange in the amount of $25,000.

EFFECTIVE DATE:

June 1, 2012