• NOTICE OF DISCIPLINARY ACTION

      • #
      • 11-CH-1106
      • Effective Date
      • 07 December 2011
    • 11-CH-1106

      EXCHANGE DISCIPLINARY ACTION

      CLEARING MEMBER: UBS Securities LLC

      CBOT RULE VIOLATIONS: 

      930.F.  Release of Excess Performance Bond

      Subject to exceptions granted by Clearing House staff, clearing members may only release performance bond deposits from an account if such deposits are in excess of initial performance bond requirements.

      971.     Segregation and Secured Requirements

      A.    All clearing members must comply with the requirements set forth in CFTC Regulations 1.20 through 1.30, 1.32, and 30.7, and CME Rules 8F100 through 8F136. This includes, but is not limited to, the following:


      1. Maintaining sufficient funds in segregation or set aside in separate or sequestered accounts;

      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 Sequestration Requirements and Funds Held in Sequestered Accounts.

      3. Obtaining satisfactory segregation, separate and sequestered account acknowledgment letters and identifying segregated, separate and sequestered accounts as such; and

      4. Preparing complete and materially accurate daily segregation, secured and sequestered amount computations in a timely manner.

      FINDINGS: Pursuant to an offer of settlement in which UBS Securities LLC neither admitted nor denied the violations, the Clearing House Risk Committee found that UBS Securities LLC violated the above rules.

      PENALTY: In accordance with the settlement offer, the Committee imposed a $50,000 fine, $25,000 of the fine will be waived if no further similar violations are found during the course of CME Group’s 2012 audit of UBS Securities LLC and if Exchange staff determines that UBS Securities LLC resolved the issues brought before the Clearing House Risk Committee.

      EFFECTIVE DATE: December 7, 2011