GFI Securities gets a slap on the wrist for alleged violations of CME rules
International derivatives marketplace CME Group has posted a notice of disciplinary action against GFI Securities Limited.
Pursuant to an offer of settlement in which GFI neither admitted nor denied any rule violations, a Panel of the Chicago Mercantile Exchange (CME) Business Conduct Committee found that, from September 1, 2021, through September 10, 2021, GFI submitted block trades to the Exchange with inaccurate execution times and failed to report block trades to the Exchange within the required time period following execution in various E-mini S&P 500 options markets.
Additionally, the Panel found that GFI failed to diligently supervise its employees when it failed to provide clear and accurate guidance regarding the execution of block trades.
The Panel thereby concluded that GFI violated CME Rules 526, 526.F., and 432.W.
In accordance with the settlement offer, the Panel ordered GFI to pay a $55,000 fine in connection with this case and companion case NYMEX 21-1528-BC ($35,000 of which is allocated to CME).