CME fines StoneX Financial and ABN Amro Clearing for recordkeeping violations
CME Group has issued StoneX Financial Inc and ABN Amro Clearing Chicago LLC with fines for violations of Rule 536.F.
The rule (in pertinent part) states that:
The Market Regulation Department will conduct audits of clearing members in order to verify the accurate recording and submitting of required audit trail information.
Pursuant to the results of a back-office CTR audit, on November 4, 2020 through November 18, 2020, StoneX Financial Inc. was found to be in violation of data entry errors for sequenced cards, verbal orders, and floor orders exceeded the 10% error level mandated by Rule 536.F.
According to the results of a back office CTR audit, on September 21, 2020 through October 2, 2020, ABN AMRO Clearing Chicago LLC was found to be in violation of data entry errors for sequenced cards, verbal orders, and floor orders exceeded the 10% error level mandated by Rule 536.F.
StoneX and ABN Amro got a slap on the wrist for these rule violations, as the companies got fined $2,500 each. The notices regarding these fines are effective January 14, 2021.
Let’s recall that, earlier in January, StoneX got another fine for violating CME rules. The company got a mild punishment for violating Market Regulation Advisory Notice 2011-5.
During the period of April 1, 2020 through June 30, 2020, StoneX Financial Inc. violated the requirements of Market Regulation Advisory Notice (MRAN) 2011-5 by failing to meet the documentation requirements for orders entered using Execution Operation Suspense Accounts.