The CME Group, an international derivatives marketplace, has announced disciplinary action against BNP Paribas Securities Corp. following an investigation by the Clearing House Risk Committee (CHRC).
According to the terms of a settlement, BNP Paribas Securities agreed to the findings without admitting or denying the allegations or rule violations. The CHRC found that BNP Paribas Securities committed several infractions, including:
1.Allowing an account to trade while undermargined for an unreasonable period.
2.Improperly issuing and deleting performance bond calls.
3.Failing to maintain accurate written records for certain performance bond calls.
4.Disbursing funds when excess performance bond funds were unavailable.
5.Incorrectly computing the segregated and secured 30.7 residual interest requirement calculations.
These actions were deemed violations of CBOT Rules 930.D., 930.E.1., 930.E.2., 930.E.3., 930.F., 970.A.4., and 971.A.
As part of the settlement, the CHRC has imposed a fine of $100,000 on BNP Paribas Securities Corp. The notice of this disciplinary action became effective on June 7, 2024.
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