Case Summary

BARCLAYS BANK PLC NYME 12-9033-BC BARCLAYS BANK PLC NFA ID: 0209452

 Respondent/Effective Date Summary 
 NFA IDRespondentEffective Date
 0209452BARCLAYS BANK PLC08/15/2014
 Rule Summary 
 NFA IDRespondentRule Type
 0209452BARCLAYS BANK PLC• 432.W. - General Offenses - Failure to Supervise
  • 534 - WASH TRADES PROHIBITED
 Committee Summary 
 NFA IDRespondentCommittee
 0209452BARCLAYS BANK PLC• BUSINESS CONDUCT COMMITTEE
 Action Summary 
 NFA IDRespondentAction Types
 0209452BARCLAYS BANK PLC• TRADE PRACTICE
 Penalty/Event Summary 
 NFA IDRespondentPenalty/EventEvent Date
 0209452BARCLAYS BANK PLC• FINE PAID $9000008/20/2014
 Narrative Summary 
Narrative for 0209452 - BARCLAYS BANK PLC
Pursuant to an offer of settlement Barclays Bank PLC (“BBPLC”) presented at a hearing on August 13, 2014, in which BBPLC neither admitted nor denied the rule violations upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“BCC Panel”) found that it had jurisdiction over BBPLC as an affiliate of NYMEX member, Barclays Capital Inc. (“Barclays”). The BCC Panel found that on multiple dates between March 2010 and December 2011, a trader employed by Barclays Capital Energy Inc. (“BCEI”), a subsidiary of BBPLC, executed a series of block trades in the Heating Oil contract between BBPLC and BCEI, accounts both owned by BBPLC, for the purpose of transferring positions between those two accounts. The BCC Panel found that although this trader was trading on behalf of BCEI, BBPLC’s trading platform, BARX, was only capable of booking trades under one entity, and the trader’s platform was configured to book trades under BBPLC. Therefore, in order to roll positions into the BCEI account from the BBPLC account, the trader executed wash block trades between the accounts. This trader was the sole decision maker of these wash block trades. The BCC Panel further found that BBPLC failed to diligently supervise its compliance personnel in a manner sufficient to ensure that they provided accurate guidance to the trader under Exchange rules with respect to the execution of these trades.

The BCC Panel found that as a result, BBPLC violated NYMEX Rules 432.W and 534.

In accordance with the settlement offer, the BCC Panel ordered BBPLC to pay a fine to the Exchange in the amount of $90,000.

This action became final on August 13, 2014 and effective August 15, 2014.