Case Summary

DE SHAW & CO LP NYME 12-9156-BC D.E SHAW AND CO. LP NFA ID: 0245715

 Respondent/Effective Date Summary 
 NFA IDRespondentEffective Date
 0245715DE SHAW & CO LP05/01/2014
 Rule Summary 
 NFA IDRespondentRule Type
 0245715DE SHAW & CO LP• 562 - POSITION LIMIT VIOLATIONS
 Committee Summary 
 NFA IDRespondentCommittee
 0245715DE SHAW & CO LP• BUSINESS CONDUCT COMMITTEE
 Action Summary 
 NFA IDRespondentAction Types
 0245715DE SHAW & CO LP• SPECULATIVE POSITION LIMIT
 Penalty/Event Summary 
 NFA IDRespondentPenalty/EventEvent Date
 0245715DE SHAW & CO LP• FINE PAID $2500005/07/2014
 Narrative Summary 
Narrative for 0245715 - DE SHAW & CO LP
Pursuant to an offer of settlement D. E. Shaw & Co., L.P. (“D. E. Shaw & Co.”) presented at a hearing on April 29, 2014, in which D. E. Shaw & Co. 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 D. E. Shaw & Co. pursuant to Exchange Rules 400 and 402, as D. E. Shaw & Co. is an affiliate of NYMEX members D. E. Shaw Kalon Portfolios, L.L.C. and D. E. Shaw Plasma Portfolios, L.L.C., and that on November 27, 2012, certain funds to which D. E. Shaw & Co. and certain affiliates provided investment management services, held an open position of 1,467.75 December 2012 Henry Hub Natural Gas Look-Alike Last Day Financial Futures (“DEC12 Financial”) future equivalent contracts, while also holding 750 long contracts of December 2012 Henry Hub Natural Gas Futures (“DEC12 Physical”).

The Panel found that D. E. Shaw & Co. violated NYMEX Rule 562 (Position Limit Violations), which allowed D. E. Shaw & Co. to hold up to 5,000 DEC12 Financial contracts, provided the firm did not hold any DEC12 Physical contracts during the last three trading dates, e.g., November 26, 27, and 28, 2012.

In accordance with the settlement offer, the Panel ordered D. E. Shaw & Co. to pay a fine to the Exchange in the amount of $25,000.

This action became final on April 29, 2014 and effective May 1, 2014.