International derivatives marketplace CME Group has issued a notice of disciplinary action against G.H. Financials, LLC.
Pursuant to an offer of settlement in which G.H. Financials, LLC neither admitted nor denied the alleged rule violations,a Panel of the Chicago Mercantile Exchange (CME) Business Conduct Committee found that between at least March 2019 through March 2021, GHF, a clearing member firm, held a customer omnibus account through which customers of a foreign Introducing Broker cleared.
During this time, GHF repeatedly failed to obtain and provide the identity of individuals or teams assigned to operator IDs within the specified omnibus account immediately upon request by Market Regulation. These failures impeded Market Regulation’s ability to properly surveil the messaging and trading activity of the Introducing Broker’s customers in the Australian Dollar, British Pound, Canadian Dollar, Swiss Franc, Mexican Peso, New Zealand Dollar, Japanese Yen, Euro FX, and E-mini S&P 500 futures markets.
The Panel thereby concluded that GHF violated CME Rules 432.Q. and 576.
In accordance with the settlement offer, the Panel ordered GHF to pay a $150,000 fine.
