ARTICLE
17 December 2019

NYMEX And COMEX Impose Sanctions For Trade Violations

CW
Cadwalader, Wickersham & Taft LLP

Contributor

Cadwalader, established in 1792, serves a diverse client base, including many of the world's leading financial institutions, funds and corporations. With offices in the United States and Europe, Cadwalader offers legal representation in antitrust, banking, corporate finance, corporate governance, executive compensation, financial restructuring, intellectual property, litigation, mergers and acquisitions, private equity, private wealth, real estate, regulation, securitization, structured finance, tax and white collar defense.
The Business Conduct Committees of the New York Mercantile Exchange and the Commodity Exchange (respectively, the "NYMEX BCC Panel" and the "COMEX BCC Panel")...
United States International Law

The Business Conduct Committees of the New York Mercantile Exchange and the Commodity Exchange (respectively, the "NYMEX BCC Panel" and the "COMEX BCC Panel") sanctioned a firm and several traders for wash trades, disruptive trade practices and failure to comply with investigative procedures.

In separate disciplinary actions:

  • NYMEX BCC fined a trader $60,000 and permanently banned him for (i) spoofing trade orders and, (ii) when investigated for layering orders, refusing to provide the requested information;
  • NYMEX BCC permanently banned a firm for failing to provide requested information during an investigation into potential rule violations; and
  • COMEX and NYMEX fined (see here and here) a trader $40,000 and imposed a suspension for (i) prearranging the execution of transactions in the Gold Futures markets and (ii) using a user ID that was not his own when entering an order.

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