CME fines BNP Paribas Securities for alleged violations of CBOT rules
International derivatives marketplace CME Group has posted a notice of disciplinary action against BNP Paribas Securities Corp.
Pursuant to an offer of settlement in which BNP Paribas Securities consented to entry of findings by the Clearing House Risk Committee (CHRC), but neither admitted nor denied the findings or the rule violations upon which the penalty is based, the CHRC found that BNP Paribas Securities:
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allowed an account to trade while undermargined an unreasonable time;
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improperly issued and deleted performance bond calls;
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failed to maintain accurate written records for certain performance bond calls;
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disbursed funds when excess performance bond funds were not available; and
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improperly computed the segregated and secured 30.7 residual interest requirement calculations.
The CHRC thereby concluded that BNPPSC violated CBOT Rules 930.D., 930.E.1., 930.E.2., 930.E.3., 930.F., 970.A.4. and 971.A.
In accordance with the settlement offer, the CHRC imposed a $100,000 fine.
The effective date of the notice is June 7, 2024.
