StoneX gets a slap on the wrist for violating CME rules
CME Group has published a notice of disciplinary action concerning StoneX Financial Inc.
The company got a mild punishment for violating Market Regulation Advisory Notice 2011-5. In its relevant part, the advisory notice states:
Recognizing that on occasion a customer-specific or EAM-specific account may not be available at the time an order is entered into Globex, de minimis usage of an Execution Operation Suspense Account will be permitted, provided the following requirements are met.
1. If a general suspense account is used rather than a customer- specific or EAM-specific account, the Execution Operation must create, prior to order entry, a written or electronic record of the order in accordance with Rule 536.B.1. The order must reflect the time of receipt of the order and a customer-specific or EAM-specific account designation.
2. The general suspense account must be unique to the desk or group of the Execution Operation submitting the order into Globex.
During the period of April 1, 2020 through June 30, 2020, StoneX Financial Inc. violated the requirements of Market Regulation Advisory Notice (MRAN) 2011-5 by failing to meet the documentation requirements for orders entered using Execution Operation Suspense Accounts.
On December 16, 2020, StoneX Financial Inc., pursuant to Rule 512 (“Reporting Infractions”), was issued a $4,000 fine for its violation of MRAN 2011-5. The allocation of the fine across exchanges is based on the activity at each Designated Contract Market (NYMEX – $2,000, and CME – $2,000).
The effective date of the disciplinary notice is January 5, 2021.