International derivatives marketplace CME Group has published a notice of disciplinary action against HSBC Securities (USA) Inc.
Pursuant to an offer of settlement in which HSBC neither admitted nor denied the finding or the rule violation upon which the penalty is based, on June 6, 2024, the Clearing House Risk Committee (CHRC) found that HSBC contractually agreed to a period of time during which the firm’s full discretion to determine when and under what circumstances positions could be liquidated was restricted. The CHRC thereby concluded that HSBC violated CME Rule 930.K.1.
The CHRC also found that HSBC has since corrected the finding and the cited customer agreement is now in compliance with Exchange rules.
In accordance with the settlement offer, the CHRC imposed a $25,000 fine.
The effective date of the notice is June 7, 2024.
