Disruptive Use of TAS and MO Trading Practices

Consistent with prior Notices, all market participants are reminded that misuse of trading at settlement (“TAS”) (including TAS block trades) or matched order (“MO”) trades to acquire a position in order to unfairly affect or attempt to unfairly affect a settlement price may subject the member and/or the market participant to disciplinary action for any of a number of rule violations, including, but not limited to:

·         attempted price manipulation

·         disruptive trading

·         wash trading

·         conduct substantially detrimental to the interests or welfare of the exchange

Any Market Regulation Department investigation of suspected manipulative pricing involving TAS or MO trades will include review of the percentage of such positions acquired by a member, group of members or market participants, and whether the offset of those positions during the close was disruptive, collusive, and/or caused or attempted to cause aberrant price movement during the close. 

Questions regarding this Advisory Notice should be directed to the following individuals in Market Regulation:

   Thomas LaSala, Managing Director and NYMEX Chief Regulatory Officer     212.299.2897

   Anthony V. Densieski, Director, Market Surveillance                                        212.299.2881

   Nancy Minett, Director, General Investigations                                                  212.299.2940