|Pursuant to an offer of settlement that J.P. Morgan Securities LLC (“JPM”) presented at a hearing on August 14, 2012, in which JPM neither admitted nor denied the rule violations upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that for trade date December 20, 2011, the last trading day for physically settled January 2012 Crude Oil (“JAN12 Crude”) futures contracts, JPM inadvertently overstated open interest in the JAN12 Crude futures contract by 864 contracts, or 46.9% resulting from a clerical error while affecting a transfer. The Panel also found that on December 20, 2011, JPM offset concurrent long and short positions totaling 1,112 JAN12 Crude futures contracts that it held for a customer. This offset resulted in an overstatement of open interest in the JAN12 Crude futures contract of 5.2% for trade date December 19, 2011.
The Panel found that as a result, JPM violated NYMEX Rule 854.
In accordance with the settlement offer, the Panel ordered JPM to pay a fine to the Exchange in the amount of $65,000. This $65,000 fine reflects the total fine amount of a global settlement involving NYMEX cases 11-08682-BC and 12-08778-BC.
This action became final on August 14, 2012 and effective August 16, 2012.
Important Note: Please see companion case NYMEX 11-08682-BC.