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UBS fined USD130,000 for exceeding position limits

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The US Commodity Futures Trading Commission has issued an order filing and simultaneously settling charges against UBS for exceeding the New York Mercantile Exchange’s position limits on certain natural gas, heating oil and platinum futures contracts on more than one occasion between December 2006 and March 2008.

The CFTC order imposes a USD130,000 civil monetary penalty on UBS.

Additionally, UBS was ordered to cease and desist from further such violations of the Commodity Exchange Act and to comply with an undertaking set forth in the order.
According to the order, on more than one occasion UBS exceeded the position limits set out in a Nymex rule, which fixes limits on positions that may be held during the current delivery or “spot” month for futures contracts.

This rule and certain CFTC-approved amendments fix limits for Nymex’s Michigan Consolidated Gas Co. Natural Gas Basis Swap futures contract, Transcontinental Gas Pipeline Co. Zone 4 Index Natural Gas Basis Swaps futures contract, New York Harbor No. 2 Heating Oil futures contract and the Platinum futures contract.
In settling the matter, the CFTC has taken into account the cooperation of UBS.

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