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CME GROUP SAYS BNP PARIBAS LONDON TO PAY $30,000 FINE

(The following is a reformatted version of a press release
issued by CME Group and received via electronic mail. The
release was confirmed by the sender.) 
CME Group - Exchange Disciplinary & Access Denial Actions 
NEW YORK EXCHANGE
NOTICE OF DISCIPLINARY ACTION 
FILE NO.:        NYMEX 12-9093-BC 
NON-MEMBER:      BNP PARIBAS SA LONDON BRANCH 
EXCHANGE RULES:  Rule 432. General Offenses 
It shall be an offense: 
W. for a Member to fail to diligently supervise
its employees and agents in the conduct of their business
relating to the Exchange. 
Rule 534. Wash Trades Prohibited 
No person shall place or accept buy and sell
orders in the same product and expiration month, and, for a put
or call option, the same strike price, where the
person knows or reasonably should know that the purpose of the
orders is to avoid taking a bona fide market position exposed to
market risk (transactions commonly known or referred to as wash
sales). Buy and sell orders for different accounts with common
beneficial ownership that are entered with the intent to negate
market risk or price competition shall also be deemed to violate
the prohibition on wash trades. Additionally, no person shall
knowingly execute or
accommodate the execution of such orders by direct or indirect
means. 
FINDINGS:
Pursuant to an offer of settlement that BNP Paribas SA London
Branch (“BNP London”) presented at a hearing on July 31, 2013,
in which BNP London neither admitted nor denied the rule
violations upon which the penalty is based, a Panel of the NYMEX
Business Conduct Committee (“Panel”) found that BNP London is
subject to the jurisdiction of the Exchange because it is an
affiliate of a NYMEX member and that on April 17, 2012, a trader
employed by BNP entered a series of four buy and sell orders in
MAY12 Crude within five seconds of one another between accounts
with the same beneficial owner, resulting in four trades for a
total of 450 lots.  The Panel also found that BNP failed to
diligently supervise its trader in a manner sufficient to ensure
that he was familiar with Exchange rules such as through
appropriate compliance training. 
The Panel found that as a result of the foregoing, BNP Paribas
London violated Exchange Rules 432.W. and 534. 
PENALTY: 
In accordance with the settlement offer, the Panel ordered BNP
Paribas London to pay a fine to the Exchange in the amount of
$30,000. 
EFFECTIVE DATE:            August 2, 2013 
(bjh) NY 
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