CME Group has posted a notice of disciplinary action against Challenger Life Company Limited.

Pursuant to an offer of settlement in which Challenger Life Company Limited neither admitted or denied the Rule violation or factual finding upon which the penalty is based, a Panel of the New York Mercantile Exchange Business Conduct Committee found that on March 30, 2022, Challenger held a position in April 2022 Platinum Futures (APR22 PL) of 874 contracts, which was 374 contracts, or 74.8%, over the position limit. APR22 PL position limits went into effect at the close of business on March 30, 2022, and remained in effect until April 28, 2022.

Additionally, on March 30, 2022, which was the first notice date for the delivery of APR22 Platinum futures contracts, Challenger was stopped for delivery on 700 contracts, but failed to retender the 200 certificates in excess of the delivery limit by the close of the next business day.

On March 31, 2022, Challenger was stopped for delivery on an additional 72 contracts of APR22 PL and failed to retender the excess 72 certificates by the close of the next business day, which increased its long deliveries to 772 contracts.

As a result, Challenger violated the APR22 PL standard expiration month delivery limit of 500 contracts by 272 contracts.

Further, the May 2022 Platinum futures (MAY22 PL) position limit went into effect at the close of business on April 28, 2022, and remained in effect until the termination of trading on May 27, 2022. Between April 29, 2022, and May 9, 2022, Challenger issued 536 contracts of MAY22 PL, thereby violating the MAY22 PL standard expiration month delivery limit of 500 contracts by 36 contracts.

The Panel found that, as a result, Challenger violated Rule 562.

In accordance with the settlement offer, the Panel ordered Challenger to pay a fine to the Exchange in the amount of $60,000.