• NOTICE OF DISCIPLINARY ACTION

      • #
      • 14-CH-1409
      • Effective Date
      • 24 October 2014
    • NEW YORK MERCANTILE EXCHANGE

      NOTICE OF DISCIPLINARY ACTION

      FILE NO.: 14-CH-1409

      MEMBER FIRM: Newedge USA, LLC

      CME RULE: 971. SEGREGATION, SECURED AND CLEARED SWAPS CUSTOMER ACCOUNT REQUIREMENTS

      A. All clearing members must comply with the requirements set forth in CFTC Regulations 1.20 through 1.30, 1.32, 1.49 and 30.7, and Part 22 of the CFTC Regulations. This includes, but is not limited to, the following:

      2. Computing, recording and reporting completely and accurately the balances in the:

      a. Statement of Segregation Requirements and Funds in Segregation;

      b. Statement of Secured Amounts and Funds Held in Separate Accounts; and

      c. Statement of Segregation Requirements and Cleared Swaps Customer Collateral Held in Cleared Swaps Customer Accounts. 

      FINDINGS: Pursuant to an offer of settlement in which Newedge USA, LLC neither admitted nor denied the rule violation upon which the penalty is based, on October 23, 2014, the Clearing House Risk Committee found that Newedge USA, LLC violated NYMEX Rule 971.A.2.

      PENALTY: In accordance with the settlement offer, the Clearing House Risk Committee fined Newedge USA, LLC $25,000.

      EFFECTIVE DATE: October 24, 2014