ICE Futures U.S. has announced a settlement of charges against Citigroup Global Markets, Inc.

On October 12, 2022, a subcommittee of the Exchange’s Business Conduct Committee determined that in multiple instances between January 2020 and November 2021, Citigroup Global Markets, Inc. (Citi) may have violated Exchange Rule 6.15(a) by failing to submit to the Exchange accurate daily large trader reports on reportable customer positions and Exchange Rule 4.01(a) by failing to supervise its employees on accurate position reporting.

The relevant Exchange rules state:

• Rule 6.15(a) – Reportable Positions and Daily Reports

Clearing Members, Carrying Members and foreign brokers which hold, control, or carry for any Customer a reportable position, as such term is defined by the Act and the Regulations thereunder, shall submit to the Exchange daily reports with respect to such positions containing the information that is required to be reported to the Commission in the same form as prescribed by the Commission, unless otherwise specified by the Exchange.

• Rule 4.01(a) – Duty to Supervise

Every Person shall diligently supervise the Exchange-related activities of such Person’s employees and agents. For purposes of this Rule, the term “agent” includes any Exchange- related activities associated with automated trading systems that generate, submit and/or cancel messages without human intervention. Every Person shall also be responsible for the acts and omissions of such employees and agents.

In accordance with the terms of settlement, in which Citi neither admitted nor denied the alleged rule violations, Citi agreed to pay a monetary penalty of $90,000.