NOTICE OF SUMMARY ACTION

FILE NO.:

NYMEX DQA-21-0732

MEMBER:

STONEX FINANCIAL INC.

RULE VIOLATION:

536.C BUNCHED ORDERS AND ORDERS ELIGIBLE FOR POST EXECUTION ALLOCATION

Bunched orders must be allocated and recorded in accordance with CFTC Regulation 1.35(b) and the NFA’s Interpretive Notice related to Compliance Rule 2-10.

With respect to bunched Globex orders, such orders may be entered using a series designation or suspense account number provided that 1) the order is being placed by an eligible account manager for multiple accounts eligible for post execution allocation or 2) a written, pre-determined allocation scheme that defines the series has been provided to the futures commission merchant accepting or clearing the order prior to the time that such order is entered. In the latter case, if such information has not been provided to the futures commission merchant prior to the time of order entry, each specific account number must be entered into Globex. Additionally, for all such bunched orders executed on Globex, the final account specific allocations must be submitted to the clearing system no later than the end of each trading day.

FINDINGS:

During the period of April 1, 2021 through June 30, 2021, StoneX Financial Inc. violated Rule 536.C by failing to meet the documentation requirements for orders entered using Execution Operation Suspense Accounts and Bunched RFC Order Suspense Accounts and failing to properly use Bunched RFC Order Suspense Accounts.

PENALTY:

On January 26, 2022, StoneX Financial Inc. pursuant to Rule 512 (“Reporting Infractions”) was collectively issued a $5,000 fine for its violations of Rule 536.C. as follows:  NYMEX - $2,500, CBOT - $2,500.

EFFECTIVE DATE:

February 14, 2022