ICE Futures U.S. has posted a notice of settlement with Citigroup Global Markets Inc.

On November 2, 2023, a subcommittee of the Exchange’s Business Conduct Committee (BCC) determined that, from approximately 2015 through the beginning of November 2022, Citigroup may have violated Exchange Rules 2.12 and 6.15(a) by misreporting open interest and large trader positions, respectively, because of a faulty programming logic in Citigroup’s futures reporting system.

In October 2022, Citigroup self-reported to the Exchange the reporting program defect and the potential for reporting discrepancies going back several years. The errors appeared to have occurred in numerous instances in different Exchange contracts and were not readily apparent to the Exchange during the time period due to the way that Citigroup reported the data.

The BCC separately determined that Citigroup may have violated Exchange Rule 4.01(a) by failing to diligently supervise the Exchange-related activities of its employees and 4.01(b) by failing to establish, administer, and enforce supervisory systems, policies, and procedures that are reasonably designed to ensure compliance with Exchange Rules.

In accordance with the terms of settlement, in which Citigroup neither admitted nor denied the alleged rule violations, Citigroup agreed to pay a monetary penalty of $900,000.