CME Punishes StoneX for Rules Violation
CME Group announced that it has fined StoneX, a financial services company, for a rule violation. The Group mentioned that StoneX failed to properly document orders.
According to the official details of the notice, between 1 April 2020 and 30 June 2020, StoneX did not comply with documentary requirements outlined by CME in Market Regulation Advisory Notice (MRAN).
The Group mentioned that the orders executed through Execution Operation Suspense Accounts were not properly documented and due to that reason StoneX was issued a $4,000 fine for its violation of MRAN 2011-5.
“If a general suspense account is used rather than a customer-specific or EAM-specific account, the Execution Operation must create, prior to order entry, a written or electronic record of the order in accordance with Rule 536.B.1. The order must reflect the time of receipt of the order and a customer-specific or EAM-specific account designation. During the period of April 1, 2020, through June 30, 2020, StoneX Financial Inc. violated the requirements of Market Regulation Advisory Notice (MRAN) 2011-5 by failing to meet the documentation requirements for orders entered using Execution Operation Suspense Accounts,” CME Group mentioned in the official notice.
“On December 16, 2020, StoneX Financial Inc., pursuant to Rule 512 (‘Reporting Infractions’), was issued a $4,000 fine for its violation of MRAN 2011-5. The allocation of the fine across exchanges is based on the activity at each Designated Contract Market,” CME added.
The New York-based financial services company announced the change of its stock ticker symbol in 2020 after the company rebranded from INTL FCStone to StoneX earlier this year. Finance Magnates earlier reported about a penalty imposed by The Chicago Board of Trade (CBOT) on StoneX for violations related to trade transfer.
StoneX is currently offering institutional-level financial services to exchange platforms worldwide, including execution, post-trade settlement, and clearing. StoneX completed the acquisition of GAIN Capital Holdings earlier this year and reported a significant spike in FX Revenue after the completion of its acquisition.
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