ICE Futures US has announced settlement of charges against ARB Trading Group North LP.
A subcommittee of the Exchange’s Business Conduct Committee (BCC) determined that from January 2023 through February 2023 (the “Relevant Period”), ARB Trading, through the actions of one of its former traders, may have violated Exchange Rules 4.02(l)(1)(A), 4.02(l)(1)(C), 4.02(l)(2), and 4.04.
The BCC found that during the Relevant Period, the former trader appeared to have engaged in a pattern of entering a large order at one price level on one side of the orderbook while trading small-quantity order(s) on the opposite side. In each instance, the trader deleted the larger order shortly after the smaller order(s) traded. The former trader’s activity indicated that the large orders were not entered with the intent to trade.
The BCC further found that despite ARB Trading’s existing supervisory processes and procedures and surveillance system, ARB Trading may have violated Exchange Rule 4.01(a) by failing to ensure its surveillance and monitoring systems were operating sufficiently to capture the trading at issue.
In accordance with the terms of settlement, in which ARB Trading neither admitted nor denied the alleged rule violations, ARB Trading agreed to pay a monetary penalty of $115,000 and disgorge $3,206.25 in profits.
