ICE Futures U.S. has announced a settlement of charges against Sunrise Brokers LLP. In accordance with the terms of settlement, in which Sunrise neither admitted nor denied the alleged rule violations, Sunrise agreed to pay a monetary penalty of $100,000.

A subcommittee of the Exchange’s Business Conduct Committee determined that in several instances between December 2018 and March 2019, Sunrise Brokers LLP may have violated Exchange Rule 4.07(c) by misreporting the execution time of block trades and submitting block trades beyond the 15-minute reporting window and Exchange Rule 4.01(a) by failing to supervise the Exchange-related activities of its employees.

Let’s note that, under the Exchange’s rules, the parties to a Block Trade have to cause the Transaction to be reported to the Exchange in accordance with such procedure as are determined by the Exchange from time to time.

Either party, or broker, may report a block trade. The party or broker submitting the block trade to the Exchange is responsible for reporting the time of execution (the time the parties agreed to the block transaction). Block trades in the [Energy Futures and Options] contracts must be reported no later than 15 minutes of execution.

Every Person has to 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.

The Exchange notes that there was no customer harm caused in this case.