NOTICE OF SUMMARY ACTION

FILE NO.:

CME DQA-20-0444

MEMBER:

STONEX FINANCIAL INC.

RULE VIOLATION:

MARKET REGULATION ADVISORY NOTICE 2011-5 (DOCUMENTATION OF CUSTOMER ORDERS AND SUBMISSSION OF SUSPENSE ACCOUNTS ON CME GLOBEX)

Recognizing that on occasion a customer-specific or EAM-specific account may not be available at the time an order is entered into Globex, de minimis usage of an Execution Operation Suspense Account will be permitted, provided the following requirements are met.

1.         If a general suspense account is used rather than a customer- specific or EAM-specific account, the Execution Operation must create, prior to order entry, a written or electronic record of the order in accordance with Rule 536.B.1. The order must reflect the time of receipt of the order and a customer-specific or EAM-specific account designation.

2.         The general suspense account must be unique to the desk or group of the Execution Operation submitting the order into Globex.

FINDINGS:   

During the period of April 1, 2020 through June 30, 2020, StoneX Financial Inc. violated the requirements of Market Regulation Advisory Notice (MRAN) 2011-5 by failing to meet the documentation requirements for orders entered using Execution Operation Suspense Accounts.

PENALTY:

On December 16, 2020, StoneX Financial Inc., pursuant to Rule 512 (“Reporting Infractions”), was issued a $4,000 fine for its violation of MRAN 2011-5. The allocation of the fine across exchanges is based on the activity at each Designated Contract Market.

NYMEX      $2,000

CME           $2,000

Total Fine   $4,000

EFFECTIVE DATE:

January 5, 2021