International derivatives marketplace CME Group today posted a notice of disciplinary action against StoneX Financial Inc.
Pursuant to an offer of settlement in which StoneX neither admitted nor denied the rule violation or factual findings upon which the penalty is based, a Panel of the New York Mercantile Exchange Business Conduct Committee found that on November 26, 2024, the last trade date for the physically settled December 2024 Henry Hub Natural Gas (“DEC24 NG”) futures contract, StoneX carried a position of one short contract for one of its customer through the expiration of trading in DEC24 NG.
StoneX should have been aware that its customer was incapable of making delivery, and did not ensure that the customer’s position was liquidated prior to the expiration of trading.
The Panel found that StoneX thereby violated NYMEX Rule 716.
In accordance with the settlement offer, the Panel ordered StoneX to pay a fine in the amount of $20,000.
