CME fines DRW Holdings for rule violations
International derivatives marketplace CME Group has posted a notice of disciplinary action against DRW Holdings LLC.
Pursuant to an offer of settlement in which DRW Holdings LLC neither admitted nor denied the rule violations, a Panel of the CME Business Conduct Committee found that between February 13, 2020, and March 23, 2022, DRW retained outside legal counsel to represent the firm and to respond to Market Regulation’s requests for books and records in connection with an investigation.
Outside counsel consistently failed to provide requested books and records in a timely and complete manner. Further, although the firm’s outside counsel requested and received an extension to provide requested materials, as well as to produce requested materials on a rolling basis, outside counsel nonetheless failed to produce the same in a timely and complete manner.
The Panel concluded that, pursuant to CME Rule 433, DRW is strictly liable for the acts of its outside counsel, whose conduct the Panel found violated CME Rules 432.L. 2. and 432.L.3.
In accordance with the settlement offer, and after considering DRW’s historical compliance with exchange rules 432.L.2. and 432.L.3., the Panel ordered DRW to pay a fine in the amount of $55,000.