CME Group has published a notice of disciplinary action, effective July 8, 2022. The notice concerns Virtu Americas LLC (VAL), which has agreed to pay a fine of $75,000, under an offer of settlement.

VAL neither admitted nor denied the rule violations upon which the penalty is based.

A panel of the NYMEX Business Conduct Committee (BCC Panel) found that in January 2020, VAL, failed to report a block trade in the Platinum futures contract to the Exchange within the required time period following execution.

Additionally, the Panel found that a VAL trader executed a Crude Oil futures block trade on April 15, 2020, on behalf of a VAL account opposite another account that shared common beneficial ownership. The Panel found that each party’s decision to enter into the block trade was not made by an independent decision maker.

The Panel found that as a result of the foregoing, VAL violated NYMEX Rules 526.F. And 534.

Moreover, the Panel found that between November 2019, and April 2020, VAL failed to make a complete production of responsive records in a timely manner to several requests by duly authorized Exchange staff to produce records, including trade-related electronic chat communications.

The Panel also found that VAL failed to diligently supervise its employees by not properly advising and training its traders as to relevant Exchange rules and MRANs, and by failing to ensure that its compliance personnel provided clear and accurate guidance to the traders regarding the execution of block trades and wash transactions.

The Panel found that as a result of the foregoing, VAL violated NYMEX Rules 432.L.3. and 432.W.

In accordance with the settlement offer, the BCC Panel ordered VAL to pay a $75,000 fine in connection with this case and companion case COMEX 20-1273-BC, $25,000 of which is to be paid to NYMEX.