Tullett Prebon Energy (Singapore) fined for violating NYMEX rules
Tullett Prebon Energy (Singapore) has agreed to pay a fine for violating NYMEX rules. This is revealed by a disciplinary notice published by CME Group on March 18, 2021.
The fine is a part of a settlement offer, in which TP Singapore neither admitted nor denied the rule violations upon which the penalty is based.
A Panel of the NYMEX Business Conduct Committee found that between January 13, 2020 and January 17, 2020, TP Singapore executed block trades for customers in various NYMEX Energy futures contracts that ICAP Corp. failed to report accurate trade details for these block trades to the Exchange. The Panel also found that, during this timeframe, TP Singapore failed to diligently supervise the execution of block trades by its employees to enable compliance with Exchange block trade reporting requirements.
The Panel concluded that TP Singapore violated Exchange Rules 432.W. (General Offenses – Failure to Supervise) and 526.F. (“Block Trades”).
These rules (in relevant part) state:
- RULE 432. GENERAL OFFENSES
It shall be an offense:
W. for any party to fail to diligently supervise its employees and agents in the conduct of their business relating to the Exchange.
- RULE 526. BLOCK TRADES
The Exchange shall designate the products in which block trades shall be permitted and determine the minimum quantity thresholds for such transactions. The following shall govern block trades:
F. Unless otherwise agreed to by the principal counterparties to the block trade, the seller, or, in the case of a brokered transaction, the broker handling the block trade, must ensure that each block trade is reported to the Exchange within the time period and in the manner specified by the Exchange. The report must include the contract, contract month, price, quantity of the transaction, the respective clearing members, the time of execution, and, for options, strike price, put or call and expiration month. The Exchange shall promptly publish such information separately from the reports of transactions in the regular market.
In accordance with the settlement offer, the Panel ordered TP Singapore to pay a fine to the Exchange in the amount of $50,000.