• NOTICE OF DISCIPLINARY ACTION

      • #
      • 12-CH-1204
      • Effective Date
      • 29 August 2012
    • 12-CH-1204                                               

      EXCHANGE DISCIPLINARY ACTION

      CLEARING MEMBER: Deutsche Bank Securities Inc.

      CBOT RULE VIOLATIONS:   

      Rule 970. Financial Requirements

      A. Subject to exemptions granted by Exchange staff, all clearing members, including non-FCMs, must comply with the requirements set forth in CFTC Regulations 1.10, 1.12, 1.17 and 1.18. This includes, but is not limited to, the following:

      4. Completely and accurately computing and recording the balances in the net capital computation including capital requirements.                                             

      Rule 971 Segregation, Secured and Sequestered 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:

      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, secured 30.7 and sequestered account acknowledgment letters and identifying segregated, secured 30.7 and sequestered accounts.

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

      PENALTY: In accordance with the settlement offer, the Committee imposed a $50,000 fine.

      EFFECTIVE DATE: August 29, 2012