NOTICE OF DISCIPLINARY ACTION

FILE NO.:

NYMEX 12-08777-BC

NON-MEMBER:

PCE INVESTORS LIMITED

NYMEX RULE:

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 PCE Investors Limited (“PCE”) presented at a hearing on February 12, 2013, in which PCE neither admitted nor denied the rule violation upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that PCE voluntarily submitted itself to the jurisdiction of the Exchange for purposes of settling this matter and that on February 23, 2012, maintained an open futures equivalent position of 1,267 short March 2012 Henry Hub Natural Gas Futures (“MAR12 NatGas”) contracts which was 267 contracts, or 26.7%, over the standard expiration month limit in effect for trade dates February 23, 24 and 27, 2012. The Panel also found that PCE liquidated its overage position in a commercially reasonable manner and realized a profit of $110,810.00 by reducing its excess MAR12 NatGas positions.

The Panel found that as a result of the foregoing, PCE violated NYMEX Rule 562.

PENALTY:

In accordance with the settlement offer, the Panel ordered PCE to pay a fine to the Exchange in the amount of $25,000. The Panel also ordered PCE to disgorge profits in the amount of $110,810.00.

EFFECTIVE DATE:

February 14, 2013