NOTICE OF DISCIPLINARY ACTION

MEMBER:

Macquarie Futures USA LLC

NYMEX RULE VIOLATIONS:

Rule 716 Duties to Clearing Members

Prior to the last day of trading in a physically delivered contract, each clearing member shall be responsible for assessing the account owner’s ability to make or take delivery for each account on its books with open positions in the expiring contract. Absent satisfactory information from the account owner, the clearing member is responsible for ensuring that the open positions are liquidated in an orderly manner prior to the expiration of trading.

Rule 853.A.6. Transfer of Trades

All Transfers Shall be reported to the Clearing House in a form Acceptable to the Exchange for the type of transaction involved. The proper indicator must be included in the transfer such that the transactions, including the transaction(s) to reverse an error, clear as transfers.

FINDINGS:

Pursuant to an offer of settlement in which Macquarie Futures USA LLC neither admitted nor denied the rule violations or factual findings upon which the penalty is based, on May 24, 2023, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that on November 28, 2022, Macquarie carried a long contract position for its customer in December 2022 Henry Hub Natural Gas futures through expiration and failed to assess its customer’s ability to take delivery and to ensure that the open positions in the physically delivered contract were liquidated in an orderly manner prior to the expiration of trading. Additionally, the Panel found that when Macquarie transferred the positions to another participant capable of taking delivery, it failed to include the proper indicator such that the transactions cleared as transfers.

The Panel concluded that Macquarie thereby violated NYMEX Rules 716 and 853.A.6.

PENALTY:

In accordance with the settlement offer, the Panel ordered Macquarie to pay a $20,000 fine.