Cboe fines UBS Securities for CFE rules violations
The Business Conduct Committee of the Cboe Futures Exchange LLC (CFE) has instituted proceedings against UBS Securities LLC, following an investigation by CFE Regulation.
In order to resolve this matter, UBS has submitted a CFE Rule 703 Letter of Consent for purposes of this proceeding without admitting or denying that a violation of Exchange Rules has been committed.
UBS was a CFE Trading Privilege Holder and Clearing Member. CFE has found that UBS did not maintain and could not provide to CFE audit trail data for January 23, 2018, one of ten days requested. Further, data for two of the days reviewed, March 1, 2018 and March 14, 2018, did not include all required elements.
This conduct constitutes a violation of CFE Rules 403(c) and 502. These rules state, in relevant part:
- 403(c) – Order Entry and Maintenance of Front End Audit Trail Information – Each Trading Privilege Holder shall maintain front-end audit trail information for all electronic orders entered into the CBOE System…
- 502 – Inspection and Delivery – Each Trading Privilege Holder and Clearing Member shall keep all books and records required to be kept by it pursuant to the Rules of the Exchange for a period of five years from the date on which they are first prepared…
UBS has agreed to pay a fine of $37,500. UBS has also acknowledged that the Business Conduct Committee’s decision in this matter will become part of its disciplinary record and published; and it may be considered in any future Exchange proceeding.