Cboe has posted a disciplinary decision as to Global Execution Brokers. The firm has accepted a fine and a censure as a part of a settlement with the Exchange.

The firm neither admits nor denies that violations of Exchange Rules or the Securities Exchange Act of 1934, as amended, the “Exchange Act” rules have been committed.

From August 25, 2015 through March 14, 2018, Global Execution Brokers received approximately 59,740 orders, totaling approximately 639,072 contracts, with Broker-Dealer Customer origin codes and subsequently executed the same with a Customer origin code on BZX.

In addition, between on or about August 3, 2015 and on or about April 3, 2019, the Firm executed approximately 1,675,437 orders, totaling approximately 23,237,643 contracts in classes where the originating firm was a registered market maker on the BZX that were marked with an “M” Market-Maker origin code, however, the originating Market-Maker accounts noted on the orders were not registered as approved Market-Makers with BZX.

The acts, practices, and conduct described in Paragraphs 7 and 8 constitute violations of the Exchange Act ans BZX rules in that the firm executed orders with mismarked origin codes on BZX.

Also, from August 25, 2015 through July 30, 2019, Global Execution Brokers failed to establish and maintain written supervisory procedures and supervisory system protocols that enabled it to properly supervise the activities of its associated persons and assure their compliance withthe Exchange Act and BZX Rules 18.2, 20.7, and 24.1, as such rules relate to origin code usage.

Specifically, the firm’s procedures failed to provide for a review for the accuracy of originating accounts associated with origin codes. In addition, Global Execution Brokers failed to ensure that its system protocols had been updated to include the addition of the Broker-Dealer origin code on BZX.

These acts, practices, and conduct described in Paragraph 11 constitute a violation of BZX Rule 5.1 by the Firm, in that the Firm failed to establish and maintain written supervisory procedures and supervisory system protocols that enabled it to properly supervise the activities of its associated persons and assure their compliance with the Exchange Act and BZX Rules 18.2, 20.7, and 24.1, as such rules relate to origin code usage.

Global Execution Brokers does not have any relevant disciplinary history with the Securities and Exchange Commission, any state securities regulators, BZX, or any other self-regulatory organization.

In light of the alleged rule violations described above, the firm consented to the imposition of the following sanctions:

• A censure; and
• A monetary fine in the amount of $160,000, of which $153,500 shall be paid to BZX. The remainder of the fine shall be allocated to EDGX.