X-Change Financial Access, LLC has agreed to pay a fine of $12,500 as part of a settlement with Cboe Exchange, Inc.
The firm neither admitted nor denied that violations of Exchange Rules have been committed.
During the Review Period, the firm failed to report 32 transactions executed on the floor within 90 seconds after execution.
These acts constitute violations of Exchange Rule 6.1 by the Firm, in that the firm failed to timely report 32 transactions executed on the floor within 90 seconds after execution.
During the Review Period, the firm failed to establish, maintain, and enforce written supervisory procedures (“WSPs”), and a system for applying such procedures, reasonably designed to prevent and detect violations of applicable Exchange rules that require transactions be reported to the Exchange within 90 seconds of the execution.
In particular, although the firm had WSPs requiring compliance with Cboe trade reporting rules, the Firm did not have in place WSPs to review for and actually ensure compliance with those rules. Additionally, the firm’s WSPs referenced compliance with Cboe Rule 6.51, which was renumbered Cboe Rule 6.1 as of October 7, 2019.
These acts and practices constitute violations of Exchange Rule 8.16 by the firm, in that the firm failed to implement, maintain, and enforce WSPs, and a system for applying such procedures, reasonably designed to prevent and detect violations of the timely transaction reporting requirement of Exchange Rule 6.1.
The firm does not have any prior relevant disciplinary history specifically related to timely reporting.
In addition to the fine, the firm has agreed to a censure.
