CME Group fines Macquarie Futures and Wedbush Securities for recordkeeping violations
CME Group has fined Macquarie Futures USA LLC and Wedbush Securities Inc for violations of Rule 536F, which concerns recordkeeping requirements for PIT, Globex and negotiated trades.
In relevant part, Rule 536F states:
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 23, 2020 through December 3, 2020, Macquarie Futures USA LLC was found to be in violation of data entry errors for sequenced cards, verbal orders, and floor orders exceeding the 10% error level mandated by Rule 536.F.
Also, according to the results of a back-office CTR audit, on September 22, 2020 through October 19, 2020, Wedbush Securities Inc. was found to be in violation of data entry errors for sequenced cards, verbal orders, and floor orders exceeding the 10% error level mandated by Rule 536.F.
Macquarie Futures and Wedbush Securities were each issued a $2,500 fine. This is their first violation of Rule 536.F. within 24 months. The effective date of both disciplinary notices is January 21, 2021.
Let’s recall that, last week, CME Group issued StoneX Financial Inc and ABN Amro Clearing Chicago LLC with fines for violations of Rule 536.F, that is, the same rule that was violated by Wedbush Securities and Macquarie Futures USA.
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.