NYMEX Issues Disciplinary Actions against Two Firms for Documentation Violations Relating to Non-EFRP Trades

The New York Mercantile Exchange ("NYMEX") issued two separate disciplinary actions against Newedge USA LLC ("Newedge") and Sipi Metals Corporation ("Sipi") for violating Exchange Rule 538.H ("Documentation").

According to NYMEX, Newedge and Sipi both entered into an exchange for related positions ("EFRP") transactions that did not contain documentation of the related physical transactions, and therefore were not bona fide EFRP transactions.

NYMEX ordered Newedge to pay a fine of $15,000 and fined Sipi $7,500.

See: NYMEX Notice of Disciplinary Action against Newedge; NYMEX Notice of Disciplinary Action against Sipi.