Ciclon Trading Corporation gets a slap on the wrist for alleged violations of ICE rules
ICE Futures U.S. has published a notice of settlement of charges against Ciclon Trading Corporation.
A subcommittee of the Exchange’s Business Conduct Committee determined that from January through June of 2021, Ciclon Trading Corporation may have violated Exchange Rule 4.06(b)(iv) by executing multiple Exchange for Physical transactions in different Coffee “C” Futures contracts opposite accounts with common beneficial ownership that were not independently controlled.
The relevant ICE rule states:
4.06(b)(iv) – Exchange for Related Position
The accounts involved in the execution of an EFRP Transaction must be (A) independently controlled with different beneficial ownership; or (B) independently controlled accounts of separate legal entities with the same beneficial ownership; or (C) independently controlled accounts within the same legal entity, provided that the account controllers operate in separate business units.
In accordance with the terms of settlement, in which Ciclon neither admitted nor denied the alleged rule violations, Ciclon agreed to pay a monetary penalty of $20,000.