Nasdaq ISE fines CTC for alleged rule violations
Nasdaq ISE LLC has posted a notice of disciplinary action against CTC, LLC.
Between October 2024 and April 2026 (the “Review Period”), CTC, acting as a Competitive Market Maker, violated ISE Rule Options 2, Section 4(b)(4) (the “Quote Spread Rule”) by exceeding the maximum allowable quote spread for its assigned options series in millions of instances.
CTC also violated ISE Rule Options 2, Section 5(e)(1) (the “Continuous Quoting Rule”) by failing to provide two-sided quotations in 60% of the cumulative number of seconds for which the firm’s assigned options series were open for trading in 121 instances.
Finally, during the Review Period, the Firm violated ISE Rule Options 9, Sections 1 and 2 by failing to establish and maintain a supervisory system that was reasonably designed to assure compliance with the Quote Spread Rule and Continuous Quoting Rule.
The firm consented to the imposition of the following sanctions:
- A censure; and
- A fine in the amount of $100,000, of which $95,000 will be paid to ISE.
Headquartered in Chicago, Illinois, CTC engages in, inter alia, options market making on ISE. CTC became a member of ISE in June 2001. Its registration remains in effect.
