ICE Futures U.S. has posted a notice of disciplinary action against R.J. O’Brien & Associates LLC (RJO).
On June 6, 2024, a subcommittee of the Exchange’s Business Conduct Committee determined that from May 2021 through April 2023 (the “Relevant Period”), RJO may have violated Exchange Rule 4.15(a) by failing to assign certain customers with their own unique identifications and Exchange Rule 4.15(b) by allowing employees to improperly use and share RJO-affiliated identifications with such customers for numerous block trades reported to the Exchange.
The Committee further determined that, during the Relevant Period, RJO may have violated Exchange Rule 4.01(a) by failing to diligently supervise the Exchange-related activities of its employees and Exchange Rule 4.01(b) by failing to establish, administer, and enforce supervisory systems, policies, and procedures, which are reasonably designed to achieve compliance with Exchange Rules.
In accordance with the terms of settlement, in which RJO neither admitted nor denied the alleged rule violations, RJO agreed to pay a monetary penalty of $250,000.
