ICE Futures announces settlement of charges against StoneX Markets
ICE Futures U.S. has published a disciplinary notice regarding StoneX Markets LLC.
On March 16, 2022, a subcommittee of the Exchange’s Business Conduct Committee (BCC) determined that StoneX may have violated Exchange Rule 6.20(b) in multiple instances between October 26 and October 28, 2020 by establishing positions in the spot month Henry LD1 Fixed Price Future contract that exceeded the contract’s spot month speculative position limit on an intra-day and/or inter-day basis.
The BCC further found that StoneX may have violated Exchange Rule 4.01(a) by failing to diligently supervise the activities of its employees with regard to Exchange spot month position limits.
The relevant exchange rules state:
- Rule 6.20(b) – Position Limits, Conditional Limits and Position Accountability for Energy Contracts and Oil Contracts
No Person may exceed the position limits specified in the Position Limit Tables for any Oil Contract or any Energy Contract unless an exemption has been granted by the Exchange in accordance with these Rules.
- Rule 4.01(a) – Duty to Supervise
Every Person shall diligently supervise the Exchange-related activities of such Person’s employees and agents. For purposes of this Rule, the term “agent” includes any Exchange-related activities associated with automated trading systems that generate, submit and/or cancel messages without human intervention. Every Person shall also be responsible for the acts and omissions of such employees and agents.
In accordance with the terms of settlement, in which StoneX neither admitted nor denied the alleged rule violations, StoneX agreed to pay a collective monetary penalty of $60,000 and disgorge profits of $4,342.50.