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An Ounce of Prevention is Worth a Pound of Cure

By February 12, 2019October 7th, 2021No Comments

♦Block Out the Big Penalty♦

When the NYMEX Business Conduct Committee fined an introducing broker Jan. 31 for block trade reporting violations, the panel found that, among other issues, the firm failed to properly advise its employees as to relevant Exchange rules.

The fine: $135,000
Our block trades training course: $35

In its findings, the NYMEX panel stated that the firm failed to report its block trades within the prescribed time period, failed to report accurate trade details, and failed to supervise the execution of block trades by its employees.

The mechanics for reporting block trades differ considerably among the Exchanges due to the different electronic facilities available. Our course “Noncompetitive Trading: Block Trades and EFRPs” covers the reporting requirements in detail and addresses other issues including pre-execution communications, quantity thresholds, eligible contract participants, common beneficial ownership, fair pricing, reporting responsibility, documentation and record retention.