International derivatives marketplace CME Group has posted a notice of disciplinary action against Marex Capital Markets, Inc.

Pursuant to an offer of settlement, in which Marex Capital Markets, Inc. neither admitted or denied the Rule violations or factual findings upon which the penalty is based, a Panel of the CBOT Business Conduct Committee found that on various occasions between December 8, 2023, and February 12, 2024, Marex reported inaccurate and untimely large trader positions and open interest to the Exchange and Clearing House.

On trade date December 19, 2023, positions in customer accounts were duplicated and reopened due to an incorrect setting to the firm’s back-office system, which caused the firm to report inaccurate open interest. The adjustments Marex submitted following these errors were late and resulted in significant position adjustments.

Additionally, on December 8, 2023, and February 12, 2024, as a result of incorrect account setup issues and missed large trader adjustment deadlines, Marex: (1) submitted inaccurate large trader position reports to the Exchange; (2) failed to submit position change data to the Clearing House in a timely manner; and (3) failed to accurately report concurrent long and short positions as open positions and/or accurately report reductions to these positions.

These inaccurate and untimely reports included positions in various contract months of U.S. Treasury Bond options on futures, Soybean Meal F&O, Soybean Oil F&O, U.S. Treasury Note options, Rough Rice options, 5-Year T-Note options, 2-Year T-Note options, 30-Year UMBS futures, 30-Year Yield futures, 3-Year T-Note futures, 30-Day Federal Fund options, Bloomberg Commodity Index futures, Corn F&O, Short-Dated New Crop Corn options, 5-Year T-Note weekly options, KC HRW Wheat F&O, Oat futures, Soybean F&O, Soybean Calendar Spread options, Short-dated New Crop Soybean options, U.S. Treasury Note weekly options, Ultra U.S. Treasury Bond options, U.S. Treasury Bond weekly options, Wheat F&O, 5-Year T-Note weekly options, U.S. Treasury Note weekly options, Wheat weekly options, Mini-sized Corn futures, E-mini Dow Jones Industrial Average Index futures, and Mini-sized Wheat futures.

The Panel found that as a result of the foregoing, Marex violated CBOT Rules 561.A., 811, and 854.C.

In accordance with the settlement offer, the Panel ordered Marex to pay a fine in the amount of $200,000 in connection with this case and three companion cases.