NOTICE OF DISCIPLINARY ACTION

FILE NO.:

NYMEX 12-08835-BC

NON-MEMBER:

DYNAMIC CAPITAL MANAGEMENT LLC

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 Dynamic Capital Management LLC (“Dynamic“) presented at a hearing on June 24, 2013, in which Dynamic neither admitted nor denied the rule violation upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that Dynamic voluntarily submitted itself to the jurisdiction of the Exchange for purposes of settling this matter and that on March 26, 2012, Dynamic maintained an open futures equivalent position of 1,349 short April 2012 Henry Hub Natural Gas Futures (“APR12 NatGas”) contracts which was 349 contracts, or 34.9%, over the standard expiration month limit in effect for trade dates March 26, 27 and 28, 2012.

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

PENALTY:

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

EFFECTIVE DATE:

June 26, 2013