X-Change Financial Access, LLC (XFA) has agreed to pay a fine of $130,000 as a part of a settlement with Cboe Exchange, Inc.
During the Review Period (in or about March 2023 through in or about March 2024), XFA failed to immediately and/or continuously represent customer orders marked as “Held.” Specifically, the firm failed to immediately and/or continuously represent at least 24,859 Held orders.
This conduct constitutes violations of Exchange Rule 5.91 by the firm, in that the firm failed to handle “Held” orders with due diligence.
During the Review Period, XFA had Written Supervisory Procedures (“WSPs”) in place that defined its obligations to comply with Cboe due diligence rules, but those WSPs did not detail how the firm actually reviews for and ensures compliance with those rules.
This conduct constitutes violation of Exchange Rule 8.16 by the firm, in that the firm failed to establish, maintain, and enforce WSPs, and a system for applying such procedures, reasonably designed to prevent and detect violations of Cboe Rule 5.91 which requires orders to be handled with due diligence.
XFA does not have any prior relevant disciplinary history specifically related to due diligence violations.
In light of the alleged rule violations, XFA consents to the imposition of a censure and a monetary fine in the amount of $130,000.
