ICE Futures U.S. fined GFI Securities LLC US $42,500 for not complying with its recordkeeping requirements for block trades. According to an IFUS business conduct committee, the firm may have failed to record and maintain all written and oral communications that led to the execution of block trades, and to report block trades correctly and timely. Moreover, said the BCC, one of the firm’s brokers may have impermissibly disclosed the identity of a customer who engaged in block trades. The firm was also charged with failure to supervise. GFI voluntarily consented to the settlement without admitting or denying any rule violations.
Separately, Step Consulting, LLC agreed to remit a fine of US $22,500 to IFUS for using the same trade identification for automated and manually placed orders, in violation of exchange rules. IFUS claimed the trades entered automatically were placed to test connectivity and not for the purpose of execution.
Finally, CACEIS Bank agreed to a fine of US $7,500 to IFUS for engaging in a wash sale transaction between accounts owned and controlled by a client after first notice day for cotton futures contracts. Positions were moved in this manner, said IFUS, because the transaction occurred after first notice day in the relevant futures contract and no transfer trades were permitted at such time.