CME fines Tradition Dubai for violating block trades rules
CME Group today posted a notice of disciplinary action against Tradition Dubai Ltd.
Pursuant to an offer of settlement in which Tradition Dubai neither admitted nor denied the Rule violations or factual findings upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee found that from June 1, through June 30, 2020 and September 1, 2020, through November 30, 2020, Tradition Dubai submitted multiple block trades to the Exchange in various NYMEX energy products with inaccurate execution times and failed to report block trades to the Exchange within the required time period following execution.
The Panel further found that on multiple occasions during the course of brokering these block trades, Tradition Dubai disclosed counterparty information without the express permission of the counterparties.
Additionally, the Panel found that Tradition Dubai failed to diligently supervise its employees by failing to properly advise and train its employees as to relevant Exchange Rules and Market Regulation Advisory Notices (MRANs) in a manner sufficient to ensure compliance with the same.
The Panel found that as a result of the foregoing, Tradition Dubai violated NYMEX Rules 526, 526.F. and 432.W.
In accordance with the settlement offer, the Panel ordered Tradition Dubai to pay a $65,000 fine.