Cboe fines Wolverine Execution Securities for alleged rule violations
Cboe Exchange, Inc. has published a disciplinary decision regarding Wolverine Execution Services, LLC. The firm neither admitted nor denied that violations of Exchange Rules have been committed.
Between December 2021 and May 2022 (the “Review Period”), Wolverine Execution Services failed to report 162 transactions executed on the floor within 90 seconds after execution. These 162 instances were taken from a sample of exceptions generated during the Review Period that were reviewed, and as such, represent the minimum number of violative transactions during the Review Period.
During the Review Period, the Firm failed to establish, maintain, and enforce written supervisory procedures (WSPs), and a system for applying such procedures, reasonably designed to prevent and detect violations of applicable Exchange rules that require transactions be reported to the Exchange within 90 seconds of the execution. In particular, the Firm’s WSPs do not include a procedure designed to prevent and detect violations of the timely transaction reporting requirement of Exchange Rule 6.1.
These acts, practices and conduct constitute violations of Exchange Rule 8.16 by the Firm, in that the Firm failed to implement, maintain, and enforce WSPs, and a system for applying such procedures, reasonably designed to prevent and detect violations of the timely transaction reporting requirement of Exchange Rule 6.1.
In light of the alleged rule violations described above, Wolverine Execution Services consented to the imposition of a censure and a monetary fine in the amount of $16,500.