Release: 5783-10
For Release: February 24, 2010

The CFTC Sanctions Swiss Firm $130,000 for Exceeding Position Limits

Basel-based UBS AG charged with unlawfully exceeding NYMEX position limits on certain natural gas, heating oil and platinum futures contracts

Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today issued an order filing and simultaneously settling charges against UBS AG (UBS), a publicly traded Swiss corporation based in Basel, Switzerland, for exceeding the New York Mercantile Exchange’s (NYMEX) position limits on certain NYMEX natural gas, heating oil and platinum futures contracts on more than one occasion from in or about December 2006 through in or about March 2008.

The CFTC order imposes a $130,000 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.

The CFTC appreciates the assistance of NYMEX. In settling this matter, the CFTC has taken into account the cooperation of UBS.

The following CFTC Enforcement Division staff members were responsible for the case: Lenel Hickson, Jr., Vincent A. McGonagle and Stephen J. Obie.

Media Contacts
Scott Schneider
202-418-5080

Dennis Holden
202-418-5088

Last Updated: April 2, 2010