LCM Commodities, LLC
Rule 526. – BLOCK TRADES
The Exchange shall designate the products in which block trades shall be permitted and determine the minimum quantity thresholds for such transactions. The following shall govern block trades:
F. The seller must ensure that each block trade is reported to the Exchange within five minutes of the time of execution. The report must include the contract, contract month, price, quantity of the transaction, the respective clearing members, the time of execution, and, for options, strike price, put or call and expiration month. The Exchange shall promptly publish such information separately from the reports of transactions in the regular market.
Pursuant to an offer of settlement that LCM Commodities, LLC (“LCM”) presented at a hearing on June 16, 2015, in which LCM neither admitted nor denied the rule violations upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that LCM, a non-member, is subject to the jurisdiction of the Exchange pursuant to NYMEX Rules 400 and 418. The Panel also found that during the time period from November 2012 through April 2013, LCM executed numerous block trades for customers in various Exchange contracts that were not reported within the required time limit following execution and that LCM failed to initially report accurate trade details for certain block trades to the Exchange.
The Panel found that as a result of the foregoing, LCM violated NYMEX Rule 526.F (“Block Trades”)
In accordance with the settlement offer, the Panel ordered LCM to pay a fine to the Exchange in the amount of $95,000.