ICE Futures U.S. has announced the settlement of charges against Anthony Scigliano and Excelia Investments Limited.

On January 22, 2025, a subcommittee of the Exchange’s Business Conduct Committee (“BCC”) determined that from July 2023 through May 2024 (the “Relevant Period”) Anthony Scigliano may have engaged in different coordinated schemes each designed to facilitate the improper transfer of equity into Scigliano’s firm, Excelia Investments Limited, at the cost of different entities.

First, the BCC found that Scigliano, while trading for Excelia, may have coordinated trades with a former associate of Excelia, who, at the time, was trading on behalf of another firm (“Firm A”) and a personal account.

The coordinated trading occurred in the Cotton No. 2 (“CT”) October 2023/December 2023 (“V23/Z23”) Futures spread market on July 13 and 14, 2023, resulting in disruptions to the CT V23/Z23 market and considerable financial benefits to Excelia and the former associate’s personal account but to Firm A’s disadvantage.

The BCC determined that Scigliano’s and Excelia’s coordinated activity here may have violated Rules 4.02(c), 4.02(l)(2), and 4.04.

Second, the BCC found that Scigliano, while duly trading on behalf of a firm that was not Excelia (“Firm B”), and while remaining Excelia’s owner, may have engaged in a spread trade misallocation scheme and a money pass.

The misallocation scheme occurred in different Coffee “C” (“KC”) and Cocoa Futures spread markets on several days in February 2024 where a broker executed spreads for Excelia and Firm B. When the broker allocated the spreads into Excelia’s and Firm B’s accounts, however, the broker improperly split the legs of various spread transactions in a way that financially benefitted Excelia at the cost of Firm B.

The BCC determined that Scigliano’s and Excelia’s participation in the spread misallocations may have violated Rule 4.04. The money pass occurred in the March 2024 KC in February 2024, which resulted in a considerable movement of equity from Firm B’s account into Excelia’s account. The BCC determined that Scigliano’s and Excelia’s money pass may have violated Rules 4.02(f) and 4.04.

Third, the BCC found that agents of Excelia may have coordinated trades with the firm of a former associate of Excelia’s (“Firm C”). The coordinated trading occurred in different illiquid CT options markets on several days in May 2024, which resulted in considerable financial benefits to Excelia to the detriment of Firm C. The BCC determined that Excelia’s coordinated activity here may have violated Rules 4.02(c) and 4.04.

Lastly, the BCC determined that, during the Relevant Period, Scigliano may have used the authorized trader ID of another individual to enter orders and trades into the Exchange in violation of Rule 4.15(b) and may have impersonated another individual in communications with a clearing firm related to Firm C in violation of Rule 4.02(d), and that, during the Relevant Period, Excelia may have failed to supervise the Exchange-related activity of its agents in violation of Rule 4.01(a).

In accordance with the terms of settlement, in which Scigliano and Excelia neither admitted nor denied the alleged rule violations, Scigliano and Excelia agreed to collectively: (1) pay a monetary penalty of $500,000; (2) disgorge $1,336,246 in benefits gained; and (3) serve a minimum of five years suspension from direct and indirect trading access to all ICE Futures U.S., Inc. electronic trading platforms, including ICE Block. The suspension will run from January 22, 2025, through and including January 22, 2030.

In accordance with Rule 4.10(e), Clearing Member Responsibilities, the Market Regulation Department requests that any Clearing Member that clears customer business for ICE Futures U.S. markets that has a customer relationship (directly or indirectly) with Scigliano or Excelia immediately deny their access and contact the Exchange. Failure to promptly notify the Exchange of such information may result in a violation of Exchange rules.