Phillip Capital gets a slap on the wrist for inaccurate reporting to CME
CME has published a notice of summary action regarding Phillip Capital Inc. The member firm gets a slap on the wrist, that is, a small fine, for inaccurate reporting.
In particular, Phillip Capital violated the following rules:
- CME, CBOT, NYMEX & COMEX RULES: 811. POSITION CHANGE DATA
Position change data must be submitted to the Clearing House each trading day not later than the time specified by the Clearing House. Position change data will be in such form and contain such information as prescribed by the Clearing House. When requested, the identification of accounts will be made available to the Financial and Regulatory Surveillance Department.
- 561. REPORTS OF LARGE POSITIONS (In pertinent part)
Clearing members, omnibus accounts and foreign brokers shall submit to the Exchange a daily report of all positions required to be reported as set forth in the Position Limit, Position Accountability and Reportable Level Table in the Interpretations Section at the end of Chapter 5.
Positions at or above the reportable level in a particular expiration month of a futures contract, or in all puts or in all calls of a particular option contract expiration month, are required to be reported. For an account with reportable positions in a particular contract, all positions, regardless of size, in any contract month and in any contract that aggregates with that contract must be reported…
The Exchange may require that more than one large trader position report be electronically submitted daily. The Business Conduct Committee or the Market Regulation Department may require reports or additional account identification from any clearing member, omnibus account or foreign broker on a lesser number of positions than reflected in the Position Limit, Position Accountability and Reportable Level Table.
CME has found that, during the month of February 2021, Phillip Capital Inc, inaccurately reported its open interest in several instances of CME, CBT, NYMEX, and COMEX contracts, in violation of Rule 811. Also, during the month of February 2021, Phillip Capital Inc, inaccurately reported its large trader positions in several instances of CME, CBT, NYMEX, and COMEX contracts, in violation of Rule 561.
Hence, a fine in the amount of $5,000 was assessed against Phillip Capital Inc. for its violation of Rule 811 and 561. The notice is effective April 9, 2021.