The National Futures Association (NFA) has ordered swap dealer member StoneX Markets LLC to pay a $1,000,000 fine.

The Decision, issued by NFA’s Business Conduct Committee (BCC), is based on a Complaint issued by the BCC and a settlement offer submitted by StoneX Markets. In the settlement offer, the firm neither admitted nor denied the allegations in the Complaint.

In its Decision, the BCC found that StoneX Markets violated NFA Compliance Rule 2-4 by failing to provide timely and complete disclosure to its counterparties that the firm was not calculating initial margin (IM) according to its customary procedures.

The firm also allegedly violated NFA Compliance Rule 2-49(a) by failing to maintain and enforce an adequate risk management program with respect to the firm’s value-at-risk calculation and daily IM determination.

Finally, StoneX allegedly failed to retain required records and provide pre-trade mid-market marks to counterparties; and violated NFA Compliance Rules 2-9(d) and 2-49(a) by failing to supervise the firm’s operations.