NOTICE OF DISCIPLINARY ACTION

FILE NO.:

NYMEX 13-9503-BC

MEMBER:

JASON KOSSON

EXCHANGE RULES: 432. General Offenses

It shall be an offense:

Q. to commit an act which is detrimental to the interest or welfare of the Exchange or to engage in any conduct which tends to impair the dignity or good name of the Exchange;

T. to engage in dishonorable or uncommercial conduct;

FINDINGS:

Pursuant to an offer of settlement Jason Kosson (“Kosson”) presented at a hearing on October 28, 2014, in which Kosson neither admitted nor denied the rule violations or the finding or conclusions herein upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“BCC Panel”) found that Kosson was subject to the jurisdiction of the Exchange pursuant to Exchange Rules 400 and 402 as the conduct occurred while Kosson was a NYMEX member, and that on one or more occasions between January 2013 and July 2013, Kosson entered orders in various Crude Oil, Heating Oil, and RBOB futures contracts on the CME Globex electronic trading platform during the pre-opening session that were not for the purpose of executing bona fide transactions. The Panel found that the entry and subsequent cancellation of these orders caused fluctuations in the publicly displayed Indicative Opening Price (“IOP”).

The Panel found that as a result of the foregoing, Kosson violated Rule 432.Q. and 432.T.

PENALTY:

In accordance with the settlement offer, the BCC Panel ordered Kosson to pay a fine of $20,000. The Panel also suspended Kosson from all direct or indirect access to any trading floor or electronic trading or clearing platform owned or operated by CME Group Inc., including Globex, for a period of 15 business days. The suspension will run from October 30, 2014 through November 19, 2014, inclusive.

Please see companion cases COMEX 14-9920-BC and CME 14-9919-BC.

EFFECTIVE DATE:

October 30, 2014