Glencore Fined for Violating COMEX Exchange Rules

Glencore Ltd  was fined $25,000 and ordered to pay back $66,200 in profits for trading copper contracts in a way that violated COMEX exchange rules, according to a notice posted on the CME Group Inc website on Friday.

At a panel hearing on July 31, COMEX member Glencore settled with the COMEX Business Conduct Committee while neither admitting nor denying violating the rule.

COMEX ruled that at the close of business on November 29, 2012, Glencore held a position of 3,130 short contracts in the December 2012 COMEX copper contracts, 36.1 percent above its approved level of 2,300 short contracts.

Glencore subsequently liquidated its overage position to gain profits of $66,200, the notice said.

To settle, Chicago-based CME's notice said, the panel ordered Glencore to pay a $25,000 fine to the Exchange along with the $66,200 profits.

The notice said the Panel found that Glencore had violated Exchange Rule 562.