Case Summary

PVM FUTURES INC NYME 13-9267-BC PVM FUTURES INC. NFA ID: 0386857

 Respondent/Effective Date Summary 
 NFA IDRespondentEffective Date
 0386857PVM FUTURES INC05/01/2014
 Rule Summary 
 NFA IDRespondentRule Type
 0386857PVM FUTURES INC• 432.I - General Offense - to make misstatement to the Board, a committee, or Exchange employees
  • 536 - Recordkeeping Requirements - Pit, Globex, and Negotiated Trades
  • 526.F - Seller must ensure block trades are reported to the Exchange within five minutes
  • 432.W. - General Offenses - Failure to Supervise
 Committee Summary 
 NFA IDRespondentCommittee
 0386857PVM FUTURES INC• BUSINESS CONDUCT COMMITTEE
 Action Summary 
 NFA IDRespondentAction Types
 0386857PVM FUTURES INC• TRADE PRACTICE
 Penalty/Event Summary 
 NFA IDRespondentPenalty/EventEvent Date
 0386857PVM FUTURES INC• FINE PAID $8000005/07/2014
 Narrative Summary 
Narrative for 0386857 - PVM FUTURES INC
Pursuant to an offer of settlement that PVM Futures, Inc. (“PVM”) presented at a hearing on April 29, 2014, in which PVM neither admitted nor denied the factual allegations or rule violations upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that PVM voluntarily submitted itself to the jurisdiction of the BCC for purposes of settling this matter and that during the time period from February 2012 to January 2013, PVM executed multiple block trades for customers in various Exchange contracts that were not reported to the Exchange within the applicable time limit following execution and also misreported to the Exchange the true and accurate time of execution of multiple block trades. PVM also failed to maintain accurate written or electronic records of the block trade transactions. Specifically, the order tickets and other records PVM employed to record block trades contained inaccurate timing information and PVM did not have accurate and reliable time-keeping mechanisms in place to base the time of execution. In connection with this conduct, PVM failed to diligently supervise its employees or agents in its reporting of block trades to the Exchange.

The Panel concluded that PVM violated Exchange Rules 526.F. (“Block Trades”), 536 (“Recordkeeping Requirements for Pit, Globex, and Negotiated Trades”), 432.I. (“General Offenses – Misstatement”) and 432.W (“General Offenses—Supervision”).

In accordance with the settlement offer, the Panel ordered PVM to pay a fine to the Exchange in the amount of $80,000.

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