International derivatives market CME Group has published a notice of disciplinary measures against Glencore Singapore PTE Ltd.
Pursuant to a settlement offer in which Glencore neither admitted nor denied the rule violation or the factual findings underlying the penalty, on May 15, 2024, a panel of the NYMEX Business Conduct Committee found that on May 31, 2022, Glencore simultaneously traded the December 2022 CBL Nature-Based Global Emissions Offset Futures in separate group trades against a single counterparty.
The purpose of trading blocks was to facilitate the transfer of positions by the counterparty between related accounts. Therefore, Glencore knew or reasonably should have known that the purpose of the transactions was to negate or severely limit market risk.
The panel concluded that Glencore violated NYMEX Rule 534.
Under the settlement offer, the panel ordered Glencore to pay a $20,000 fine and forfeit $15,000 in earnings.