Notice, Pursuant to Exchange By-Law 18-2, of Disciplinary
Action Against Tiberius Qualified Master Fund, Ltd., MemberOrganization
To:Members, Member Organizations, Participants and Participant Organizations

From:

John C. Pickford, Enforcement Counsel, NASDAQ OMX PHLXSM

DATE:June 27, 2011

FINRA Matter No. 20100215784
Enforcement No. 2011-05
On June 8, 2011, the Business Conduct Committee (the “Committee”) issued a disciplinary
decision against Tiberius Qualified Master Fund, Ltd. (“Tiberius” or the “Firm”), a member
organization of the Exchange. In response to a Statement of Charges issued in thisaction, Tiberius submitted an Offer of Settlement, Stipulation of Facts and Consent toSanctions (“Offer”). Solely to settle this proceeding, and without admitting or denying thecharges, Tiberius consented to findings that during the period between January 1, 2009
and September 30, 2009 (the “Relevant Period”), it had violated Section 17 of theSecurities Exchange Act of 1934, as amended (“Exchange Act”), Rules 17a-3, 17a3(a)(19)(ii), 17a-4(b)(7), 17a-5, 17a-5(f)(2), and Rule 200(g) of Regulation SHO
promulgated under the Exchange Act, and Exchange Rules 603, 604, 703, 748(a),748(e)(1), 748(g), and 760, by, among other things: (i) failing to keep accurate books
and records; (ii) filing an inaccurate Financial and Operational Combined Uniform Single
Report with the Exchange; (iii) failing to maintain written compensation agreements
pertaining to its compensation arrangement with two of its associated persons; (iv) failingto preserve, or to provide evidence that it had preserved, signed, executed and dated
written records to reflect its expense sharing agreement with an affiliated entity; (v)failing to file with the Exchange a statement indicating that it had a contractual agreementwith accounting firm Rankin Berkower (Cayman) LTD to conduct the Firm’s 2008 Annual
Audit; (vi) sharing office space with an entity that was not a member of the Exchange but
failing to request or secure approval of, or a waiver from, the Exchange to enter into, or tomaintain, the joint occupancy of its office space with the non-member; (vii) failing timely
to amend the Uniform Application for Securities Industry Registration or Transfer filing ofone of its associated persons to reflect his: (a) association with, and his position as
Managing General Partner of, an unaffiliated entity; and (b) position as Managing Memberof another unaffiliated entity; (viii) improperly marking one options orders as “sell short”
rather than as “sell long,” and three options orders as “sell long” rather than as “sellshort;” and (ix) failing to exercise effective supervision and control over the flow of
information regarding its trading activities between its associated persons and theassociated persons of two other entities;
The Firm also consented, without admitting or denying the charges, to findings by theCommittee that Tiberius had failed to establish, maintain and enforce written supervisory
procedures, and a system for applying such procedures, that resulted in supervisorydeficiencies regarding: (i) the adoption of physical and/or informational barriers between
the Firm and (a) its affiliate, TF Asset Management, LLC; and (b) Pine Road AssetManagement, LLC, O’Neil Alpha Fund, LP, and Three Rivers Trading; (ii) the segregation ofelectronic communications generated by the Firm from the electronic communications
generated by the Augustus family of funds; and (iii) third party and independent review ofany electronic communications generated by the Firm employee charged with overall
review of its electronic communications.
Tiberius’ Offer was accepted by the Committee and was the basis of its Decision. TheCommittee found that Tiberius had violated Section 17 of the Exchange Act, Rules 17a-3,17a-3(a)(19)(ii), 17a-4(b)(7), 17a-5, 17a5(f)(2) and Rule 200(g) of Regulation SHO
promulgated under the Exchange Act, and Exchange Rules 603, 604, 703, 748(a),748(e)(1), 748(g), and 760, concurred in the sanctions consented to by it, and ordered
the imposition of the following sanctions: (i) a censure; (ii) a $5,000 fine; and (iii) anundertaking, within 60 days of the issuance of a Decision by the Committee, to:(a) correct the deficiencies identified by FINRA’s Risk Oversight andOperational Regulation department (“ROOR”) during the 2009
examination;(b) revise its WSPs to address the deficiencies identified by ROOR; and(c) submit to William Bunting, FINRA Financial Regulation Department,
1900 Market Street, Second Floor, Philadelphia, PA 19103, a signed,
dated letter providing the following:(1) a reference to this matter;(2) a representation that the Firm has revised its WSPs to address thedeficiencies identified by ROOR;(3) the date the revised WSPs were implemented; and(4) a Corrective Action Statement detailing what specific actions
Respondent has taken to correct and prevent future recurrence ofthe deficiencies identified by ROOR during its examination ofRespondent.

For more information, contact:
John C. Pickford, Enforcement Counsel, NASDAQ OMX PHLX, at +1 215 496 5273

 Copyright 2009 The NASDAQ OMX Group, Inc. All Rights Reserved.

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