Hayman Capital Management, LP
NYMEX RULE VIOLATION: RULE 562. POSITION LIMIT VIOLATIONS
Any positions in excess of those permitted under the rules of the Exchange shall be deemed position limit violations.
Pursuant to an offer of settlement Hayman Capital Management, LP (“Hayman”) presented at a hearing on May 28, 2015, in which Hayman neither admitted nor denied the rule violation upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“BCC”) found that it had jurisdiction over Hayman pursuant to Exchange Rules 400 and 418 as the conduct was transacted on CME Globex electronic trading platform, and that on January 14, 2015, Hayman held a long position of 4300 February 2015 Crude Oil Futures contracts (“FEB15 LT CRUDE”), which was 1,300 contracts (43.33%) over the 3,000 lot standard expiration month limit in FEB15 LT CRUDE, in effect as of the close of business on January 14, 2015. Hayman subsequently liquidated the overage position, resulting in profits of $709,270.00.
The Panel found that, as a result, Hayman violated NYMEX Rule 562.
In accordance with the settlement offer, the Panel ordered Hayman to pay a fine to the Exchange in the amount of $25,000 and to disgorge profits in the amount of $709,270.00.