Pursuant to the provisions of Cboe Futures Exchange, LLC (CFE) Rule 703, UBS Securities LLC has submitted Letter of Consent for the purpose of proposing a settlement of alleged rule violations.
On or about January 26, 2023, UBS Securities’ personnel entered an order in the February 2023 / March 2023 Cboe Volatility Index (VX) futures calendar spread in the firm’s automated trading system for purposes of testing market data connectivity and without the intent to execute bona fide transactions. The order caused the firm’s automated trading system to submit two child orders to the Exchange.
This conduct constitutes violations of CFE Rule 620(b)(iv) by UBS Securities, in that the firm entered orders that were not entered for the purpose of executing bona fide transactions and caused to be submitted actionable messages that had the potential to disrupt other market participants.
In light of the alleged rule violations, the firm consented to the imposition of a monetary fine in the amount of $10,000.
