ICE Futures U.S. has posted a disciplinary notice as to StoneX Financial Inc.
A subcommittee of the Exchange’s Business Conduct Committee (BCC) determined that StoneX Financial Inc. may have violated Exchange Rules 4.15(a), 4.15(b), and 4.15(c) by failing to include a unique ID for Registered Operators on certain orders and trades it transmitted to the Exchange.
For a period of over four years, from February 2018 through the beginning of August 2022, StoneX, acting as a Futures Commission Merchant, failed to assign, register, and populate unique IDs (Tag 116) for an extensive number of orders placed and traded on the Exchange.
Specifically, certain customers using a third-party front-end trading software were inappropriately assigned the same generic ID for Tag 116 on orders and trades placed on the Exchange.
The BCC further determined that StoneX may have additionally violated Rule 4.01(a) by failing to diligently supervise the accurate registration of unique IDs for customers; and 4.01(b) by failing to establish, administer, and enforce supervisory systems, policies, and procedures that are reasonably designed to achieve compliance with Exchange Rules.
In accordance with the terms of settlement, in which StoneX neither admitted nor denied the alleged rule violations, StoneX agreed to pay a monetary penalty of $300,000.
The effective date of the settlement is December 14, 2023.
