Two clearing members settled charges with ICE Futures U.S. that they allegedly failed to report open interest accurately. Credit Suisse Securities (USA) LLC agreed to pay a fine of US $30,000 to resolve a charge that, on two days in 2014, it misreported open interest in the May 2014 cocoa futures contract; while Wells Fargo Securities LLC agreed to pay a fine of US $10,000 for purportedly incorrectly reporting open interest in the Henry Penultimate Fixed Price Future on the last trading day for the contract on “multiple instances.” RJ O’Brien agreed to pay a fine of US $50,o00 as well as underpaid fees of $21,278 to resolve charges brought by IFUS that it allegedly failed to use the exchange’s ICEBlock application to post certain EFP transactions. Instead, the firm used a different exchange system. Finally, CME Group fined Yongwen Shao, a non-member, US $85,000 and permanently barred him from trading CME Group products for entering into 19 round-turn transactions from November 2009 to November 2010 and during March 2010, to transfer $35,700 from accounts of two other persons to his own trading account. Mr. Shao did not participate in the exchange’s investigation of, or answer the exchange’s charges brought against, him.
Compliance Weeds: ICE Clear U.S. rules require each clearing member to report to it by 7:30 p.m. each business day its open interest in each contract. Other times may apply during notice periods. Adjustment must be reported to ICE Clear ordinarily by 9 a.m. the following business day. (Click here to access the relevant ICE Clear rule 403.) ICE Futures U.S. may have additional rules regarding open interest reporting. (Click here, for example, to access IFUS Rule 18.05 regarding open interest in energy contracts.)