NOTICE OF DISCIPLINARY ACTION

FILE NO.:

NYMEX 13-9447-BC

NON-MEMBER:

CYPRESS ENERGY CAPITAL MANAGEMENT, LP

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 Cypress Energy Capital Management, LP (“Cypress”) presented at a hearing on September 26, 2013, in which Cypress neither admitted nor denied the rule violation upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“BCC”) found that Cypress was subject to the jurisdiction of the BCC pursuant to NYMEX Rule 418 and that at the close of business on May 23, 2013, Cypress held a short position of 1,077 June 2013 Natural Gas Futures contracts, which was 77 contracts (7.7%) over the 1,000 lot expiration month position limit in effect for trade dates May 24, 28 and 29, 2013. Cypress subsequently liquidated its overage position on May 24 resulting in profits of $5,900.

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

PENALTY:

In accordance with the settlement offer, the Panel ordered Cypress to pay a fine to the Exchange in the amount of $15,000 and disgorge profits of $5,900.

EFFECTIVE DATE:

September 30, 2013