International derivatives marketplace CME Group today posted a notice of disciplinary action against TFS Derivatives HK Limited.
Pursuant to an offer of settlement in which TFS Derivatives HK Limited neither admitted nor denied the rule violations or factual findings upon which the penalty is based, a Panel of the Chicago Mercantile Exchange Business Conduct Committee found that on several occasions from November 1, 2023, through November 24, 2023, and from February 1, 2024, through May 3, 2024, TFS Derivatives HK submitted block trades to the Exchange with inaccurate execution times and failed to report block trades to the Exchange within the required time period following execution in various E-Mini S&P 500 futures and options on futures markets.
Additionally, the Panel found that TFS Derivatives HK failed to diligently supervise its employees when it failed to provide clear and accurate guidance regarding reporting the execution of block trades in a manner sufficient to ensure compliance with the Exchange’s block trade reporting rules.
The Panel concluded that TFS Derivatives HK thereby violated CME Rules 526, 526.F., and 432.W.
In accordance with the settlement offer, the Panel ordered TFS Derivatives HK to pay a $60,000 fine.
