NOTICE OF DISCIPLINARY ACTION

FILE NO.:

NYMEX 13-9662-BC

NON-MEMBER:

RCG HOLDINGS, LLC

EXCHANGE 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 RCG Holdings, LLC (“RCGH”) presented at a hearing on June 12, 2014, in which RCGH neither admitted nor denied the rule violation upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that RCGH is subject to the jurisdiction of the Exchange because it is the affiliate (parent company) of Rosenthal Collins Capital Markets (“RCCM”), a NYMEX member, and that at the close of business on November 21, 2013, RCCM, held a futures equivalent position of 1,081 short DEC13 NatGas contracts, which was 81 contracts (8.1%) over the standard expiration month limit in effect for trade dates November 22, 25, and 26, 2013. Furthermore, Market Regulation determined that RCCM realized a profit of $5,482.68 by reducing the firm’s excess positions.

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

PENALTY:

In accordance with the settlement offer, the Panel ordered RCGH to pay a fine to the Exchange in the amount of $15,000 and a disgorgement of profits of $5,482.68.

EFFECTIVE DATE:

June 16, 2014