International derivatives marketplace CME Group has published a notice of summary action against Straits Financial LLC.
During the period July 2022 through August 2023, Straits Financial LLC submitted incomplete large trader positions in several CME, CBT, NYMEX, and COMEX futures and options contracts, in violation of Rule 561.
Pursuant to Rule 512, a fine in the amount of $15,000 was collectively assessed against Straits Financial LLC for its violations of Rule 561, as follows:
- CME – $7,500,
- CBOT – $2,500,
- NYMEX – $2,500, and
- COMEX – $2,500.
The relevant rule states:
561. SUBMISSION OF LARGE TRADER POSITIONS AND VOLUME THRESHOLD ACCOUNTS (in pertinent part)
Clearing members, omnibus accounts and foreign brokers shall submit to the Exchange a daily report of all positions required to be reported as set forth in the Position Limit, Position Accountability and Reportable Level Table in the Interpretations Section at the end of Chapter 5. Positions at or above the reportable level in a particular expiration month of a futures contract, or in all puts or in all calls of a particular option contract expiration month, are required to be reported. For an account with reportable positions in a particular contract, all positions, regardless of size, in any contract month and in any contract that aggregates with that contract must be reported…
The Exchange may require that more than one large trader position report be electronically submitted daily. The Business Conduct Committee or the Market Regulation Department may require reports or additional account identification from any clearing member, omnibus account or foreign broker on a lesser number of positions than reflected in the Position Limit, Position Accountability and Reportable Level Table.
The effective date of the notice is February 14, 2024.
