Nest Wise Petroleum gets a slap on the wrist for CME rule violations
International derivatives marketplace CME Group has posted a notice of disciplinary action against Nest Wise Petroleum LLC.
Pursuant to an offer of settlement in which Nest Wise Petroleum LLC neither admitted nor denied the rule violations or factual findings upon which the penalty is based, a Panel of the Chicago Mercantile Exchange (CME) Business Conduct Committee found that on June 21, 2023, Nest Wise added to its existing short position and sold July 2023 Standard-Size USD/Offshore RMB futures (CNHN3).
Nest Wise’s short position reached a high of 10,125 contracts, which was 125 contracts, or 1.25%, over the all-month position limit.
On the morning of June 23, 2023, Nest Wise bought 125 CNHN3 contracts to liquidate its overage and bring its position under the applicable limit.
The Panel concluded that as a result of the foregoing, Nest Wise violated CME Rule 562.
In accordance with the settlement offer, the Panel ordered Nest Wise to pay a fine of $20,000.