CME fines Eagle Seven for alleged violations of NYMEX guidelines

Worldwide derivatives market CME Group has posted a discover of disciplinary motion as to Eagle Seven LLC.

Pursuant to a proposal of settlement during which Eagle Seven LLC neither admitted nor denied any rule violations or factual allegations,a Panel of the NYMEX Enterprise Conduct Committee discovered that on commerce date February 18, 2022, Eagle Seven held an extended intraday March 2022 Mild Candy Crude Oil Futures place that was 2,138 contracts, or 42.76%, over the spot-month restrict.

The Panel additionally discovered that Eagle Seven liquidated its place in the course of the settlement interval on February 18, 2022, and accounted for greater than 55% of the amount traded in the course of the settlement interval. Eagle Seven’s liquidation of its place in the course of the settlement window was entered with a reckless disregard for the antagonistic influence on the orderly conduct of buying and selling or the honest execution of transactions within the MAR22 Crude Oil futures contract. Eagle Seven’s liquidation of its place resulted in a $470,360 revenue.

The Panel additional discovered that Eagle Seven didn’t diligently supervise its worker who engaged within the exercise at problem by not offering ample compliance coaching and/or academic supplies relating to NYMEX guidelines, and didn’t diligently supervise his buying and selling, to make sure compliance with NYMEX guidelines relating to place limits and disruptive buying and selling practices.

The BCC Panel discovered that, consequently, Eagle Seven violated NYMEX Guidelines 432.W., 562, and 575.D.

In accordance with the settlement provide, the BCC ordered Eagle Seven to pay a effective within the quantity of $115,000 and disgorge $470,360 in revenue.