NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

Eric Schwartz

NYMEX RULE VIOLATION: Rule 575. Disruptive Practices Prohibited (in part)

All orders must be entered for the purpose of executing bona fide transactions. Additionally, all non-actionable messages must be entered in good faith for legitimate purposes.

A. No person shall enter or cause to be entered an order with the intent, at the time of order entry, to cancel the order before execution or to modify the order to avoid execution.

FINDINGS:

Pursuant to an offer of settlement in which Eric Schwartz neither admitted nor denied the rule violation or factual findings upon which the penalty is based, on April 20, 2022, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that on multiple occasions during June 2020, Schwartz entered orders in the October 2020-November 2020 (“OCT20-NOV20”) and November 2020-December 2020 (“NOV20-DEC20”) Henry Hub Natural Gas futures spread markets with the intent, at the time of order entry, to cancel the orders before execution or to modify the orders to avoid execution. Specifically, Schwartz entered a large order or layered orders on one side of the market that he cancelled after receiving fills on the order(s) Schwartz entered on the other side of the market.

The Panel found that as a result of the foregoing, Schwartz violated NYMEX Rule 575.A.

PENALTY:

In accordance with the settlement offer and after considering Schwartz’s financial condition, the Panel ordered Schwartz to pay a $10,000 fine and serve a six-month trading suspension from access to any trading floor owned or controlled by CME Group and from direct and indirect access to any designated contract market, derivatives clearing organization or swap execution facility owned or controlled by CME Group. The suspension shall begin on April 22, 2022 and continue for six months from the date that payment of the fine is received in full.