International derivatives market CME Group fined Bright Point Capital Pte $75,000. Ltd for alleged violations of NYMEX rules.
Pursuant to a settlement offer, in which Bright Point Capital Pte. Ltd. neither admitting nor denying the violations of the Rule or the factual findings underlying the penalty, a panel of the NYMEX Business Conduct Committee found that on January 31, 2023, an employee of Bright Point submitted buy and sell orders on the same product and month expiration on Methanol and NGL futures purchases between two trading accounts with common beneficial ownership in order to transfer positions between the two accounts.
The Bright Point employee knew or reasonably should have known that the purpose of the orders was to avoid taking a bona fide market position exposed to market risk.
In addition, the panel found that during this time frame Bright Point failed to maintain complete written or electronic records of these wash block transactions, including any electronic time stamp reflecting the date and time each order was received.
Finally, during this time frame, Bright Point failed to diligently supervise its employees with adequate compliance training or educational materials regarding the reporting and execution of block trades and wash trades to ensure compliance with NYMEX rules regarding with block transactions and wash transactions.
The Panel found that as a result of the foregoing, Bright Point violated NYMEX Rules 534, 536.E., and 432.W.