CME fines Monick LLC for violation of CBOT rules
Monick LLC has agreed to pay a $50,000 fine, according to an offer of settlement with the CME Group regarding alleged CBOT rules violations.
Pursuant to the settlement offer in which Monick LLC neither admitted nor denied the rule violations or factual findings upon which the penalty is based, a Panel of the Chicago Board of Trade (CBOT) Business Conduct Committee found that on multiple occasions between February 28, 2020, and April 6, 2020, an automated trading system (ATS) operated by Monick entered crossed-market orders in Soybean, Soybean Meal, Corn, and Chicago SRW Wheat futures during the pre-open session due to a programming error and adversely impacted the Indicative Opening Price (IOP).
Market Regulation contacted Monick on multiple occasions after the initial incident regarding its errant messaging activity. Monick was unable to properly correct the programming error and on multiple occasions between April 6, 2020, and November 26, 2021, the ATS again entered crossed-market orders during the pre-open sessions in Soybean, Soybean Meal, Corn, and Chicago SRW Wheat futures and adversely impacted the IOP.
The Panel found that Monick, in failing to implement procedures to prevent the ATS from continually entering and canceling messages during the preopen period, failed to properly supervise the ATS. The Panel concluded that Monick thereby violated CBOT Rules 432.W. and 575.D.
In accordance with the settlement offer, the Panel ordered Monick to pay a $50,000 fine in connection with this case and companion case CME 20-1337-BC ($15,000 of which is allocated to CBOT).