CME fines Gold Street Trading for trade reporting deficiencies
CME Group has posted a notice of disciplinary action as to Gold Street Trading Limited, which will have to pay a fine for alleged violations of the Exchange rules.
A Panel of the COMEX Business Conduct Committee has found that, between May 2017 and February 2018, Gold Street failed to report block trades in COMEX Metal products, including Gold futures and options on futures, to the Exchange within the time period and in the manner specified by the Exchange. Specifically, Gold Street engaged in a continuous pattern of inaccurately reporting block trades and reporting block trades late to the Exchange.
The Panel further found that the reasons provided by Gold Street to justify its late reporting did not rise to the level of being beyond Gold Street’s control.
The Panel also found that during this timeframe Gold Street personnel did not properly train or supervise its employee, did not have a sufficient understanding of Exchange Rules, and therefore was ill-equipped to provide the necessary training and supervision needed for its employee, including as it related to compliance with Rule 526.F.
Finally, the Panel found that throughout the entire investigation, Gold Street provided incomplete records, communications unrelated to the trades at issue, and audio recording and chat transcripts that posed significant difficulties for Market Regulation Staff to review.
In addition, for almost one year, Gold Street failed to comply with the due dates provided in Market Regulation’s written request for records and then failed to seek extensions of time after completely disregarding the deadline. This violative conduct significantly delayed Market Regulation’s Investigation.
Accordingly, the Panel found that Gold Street violated COMEX Rules 526.F., 432.W., 432.L.2, and 432.L.3.
The Panel ordered Gold Street to pay a fine in the amount of $85,000.