HSBC Securities gets a slap on the wrist for violating CME recordkeeping requirements
International derivatives marketplace CME Group has issued a notice of summary action as to HSBC Securities (USA) Inc.
Pursuant to the results of a back office CTR exam for trade dates March 1, 2023 through June 28, 2023, HSBC Securities (USA) Inc.’s Data Entry Errors exceeded the 10% threshold level mandated by Rule 536.F.
The relevant rule states:
536. RECORDKEEPING REQUIREMENTS FOR PIT, GLOBEX AND NEGOTIATED TRADES
F. CTR Enforcement Program and Sanction Schedule
(In pertinent part)
The Market Regulation Department will conduct audits of clearing members in order to verify the accurate recording and submitting of required audit trail information.
Pursuant to the Rule 536.F sanction schedule, HSBC Securities (USA) Inc. was issued a $2,500 fine for its first violation of Rule 536.F. within 24 months.
The effective date of the notice is August 11, 2023.