Case Summary

REPUBLIC METALS CORPORATION CEI 13-9621-BC REPUBLIC METALS CORP. NFA ID: 0476758

 Respondent/Effective Date Summary 
 NFA IDRespondentEffective Date
 0476758REPUBLIC METALS CORPORATION05/01/2014
 Rule Summary 
 NFA IDRespondentRule Type
 0476758REPUBLIC METALS CORPORATION• 538.H - Exchange for Related Positions - Documentation
  • 534 - WASH TRADES PROHIBITED
 Committee Summary 
 NFA IDRespondentCommittee
 0476758REPUBLIC METALS CORPORATION• BUSINESS CONDUCT COMMITTEE
 Action Summary 
 NFA IDRespondentAction Types
 0476758REPUBLIC METALS CORPORATION• TRADE PRACTICE
 Penalty/Event Summary 
 NFA IDRespondentPenalty/EventEvent Date
 0476758REPUBLIC METALS CORPORATION• FINE PAID $8500005/08/2014
 Narrative Summary 
Narrative for 0476758 - REPUBLIC METALS CORPORATION
Pursuant to an offer of settlement that Republic Metals Corporation(“Republic”) presented at a hearing on April 29, 2014 in which Republic neither admitted nor denied the rule violations upon which the penalty is based,a Panel of the COMEX Business Conduct Committee (“Panel”) found that Republic is subject to the jurisdiction of the Exchange pursuant to Rule 418 and that on numerous occasions between February and August 2013 Republic entered into EFRP transactions in which Republic was on both sides of the transactions. The transactions were done for the purpose of moving positions from one Republic account to another but were executed in a manner that resulted in improper wash trades. The Panel also found that the transactions did not contain documentation of the corresponding cash positions and, thus, were not bona fide EFRP transactions.

The Panel found that as a result of the foregoing, Republic violated Rules 534 and 538.H.

In accordance with the settlement offer, the Panel ordered Republic to pay a fine to the Exchange in the amount of $85,000.

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