NOTICE OF DISCIPLINARY ACTION

FILE NO.:

NYMEX 13-09395-BC

MEMBER:

George E. Warren Co.

EXCHANGE RULE:

538.G. Identification and Submission to the Clearing House

Each EFRP Transaction shall be designated as such and shall be cleared through the Clearing House. Each such transaction shall be submitted to the Clearing House within the time period and in the manner specified by the Exchange. Clearing member firms are responsible for exercising due diligence as to the bona fide nature of EFRP transactions submitted on behalf of customers.

Market Regulation Advisory Notice RA1006-5

Q17: If an EFRP is submitted via Front-End Clearing, how soon after execution must the EFRP be submitted?

NYMEX and COMEX Products
For EFRPs executed between 7:00 a.m. and 5:45 p.m. Eastern Time, the trades must be submitted within one hour. For EFRPs executed between 5:45 p.m. and 7:00 a.m. Eastern Time, the trades must be submitted prior to 8:00 a.m. Eastern Time.

FINDINGS:

Pursuant to an offer of settlement George E. Warren (“GEW”) presented at a hearing on February 20, 2014 in which GEW, a NYMEX member, neither admitted nor denied the rule violations upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that in June 2012 and February 2013, GEW posted several EFRP transactions to the Exchange after the deadline imposed by Exchange Rules which resulted in the appearance that GEW exceeded the applicable position limit.

The Panel found that as a result, GEW violated Rule 538.G.

PENALTY:

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

EFFECTIVE DATE:

February 24, 2014