• NOTICE OF DISCIPLINARY ACTION

      • #
      • 15-CH-1502
      • Effective Date
      • 11 December 2015
    • CHICAGO BOARD OF TRADE

      NOTICE OF DISCIPLINARY ACTION

      FILE NO.: 15-CH-1502

      MEMBER FIRM: Wedbush Securities, Inc.

      CBOT RULES:

      970.  FINANCIAL REQUIREMENTS

      C. In conjunction with the requirements set forth in CFTC Regulations 1.10, 1.12, 1.17, and 1.18, clearing members must comply with the following requirements:

      2. Submit a certified Form 1-FR or FOCUS Report as of the clearing member’s fiscal year-end within the time requirements set forth in CFTC Regulation 1.10.  A clearing member must include with its certified Form 1-FR or FOCUS Report, a reconciliation from the certified Form 1-FR or FOCUS Report to the monthly Form 1-FR or FOCUS Report as of the same date or a statement that no differences were noted.                          

      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.

      FINDINGS: Pursuant to an offer of settlement in which Wedbush Securities, Inc. neither admitted nor denied the rule violations upon which the penalty is based, on December 10, 2015, the Clearing House Risk Committee found that Wedbush Securities, Inc. violated CBOT Rules 970.C.2 and 971.A.

      PENALTY: In accordance with the settlement offer, the Clearing House Risk Committee fined Wedbush Securities, Inc. $75,000.

      EFFECTIVE DATE: December 11, 2015