International derivatives marketplace CME Group has posted a notice of disciplinary action against Glencore Singapore PTE Ltd.
Pursuant to an offer of settlement in which Glencore neither admitted nor denied the rule violation or factual findings upon which the penalty is based, on May 15, 2024, a Panel of the NYMEX Business Conduct Committee found that on May 31, 2022, Glencore simultaneously negotiated the purchase and sale of December 2022 CBL Nature-Based Global Emissions Offset Futures in separate block trades opposite a single counterparty.
The purpose of the block trades was to accommodate the counterparty’s transfer of positions between related accounts. As such, Glencore knew or reasonably should have known that the purpose of the trades was to negate or strictly limit market risk.
The Panel thereby concluded that Glencore violated NYMEX Rule 534.
In accordance with the settlement offer, the Panel ordered Glencore to pay a fine of $20,000 and disgorge profits in the amount of $15,000.
