U.S. – NYMEX CS Position Limit Breach

U.S. – NYMEX CS Position Limit Breach

On 31 January 2019, NYMEX fined Credit Suisse for position limit breach.

  • Settlement with Credit Suisse International (CSI) at a hearing on Jan. 29, 2019.
  • Allegations
  • On May 30, 2018, NYMEX notified CSI, it held futures-equivalent short position of 239 MGEX June 2018 Palladium futures (JUN18 PA) contracts, and a position limit of 50 JUN18 PA contracts would go in effect at close of business on May 30.
  • Despite such notice, CSI did not reduce position below the limit by May 30 close.
  • The company thus exceeded the position limit in the JUN18 PA contract, by 189.
  • Settlement
  • In accordance with settlement offer, CSI ordered to pay a fine to NYMEX of $95k.