• NOTICE OF DISCIPLINARY ACTION

      • #
      • 12-CH-1205
      • Effective Date
      • 17 December 2012
    • 12-CH-1205

      EXCHANGE DISCIPLINARY ACTION

      CLEARING MEMBER: ROSENTHAL COLLINS GROUP, L.L.C. (RCG)

      CME RULE VIOLATION: Rule 980.B. Required Records and Reports

      Each clearing member shall maintain an adequate  accounting system, internal accounting controls, and procedures for safeguarding customer and firm assets as set forth in CFTC Regulation 1.16(d)(2). This includes, but is not limited to, the following:

      1.  Preparation and maintenance of complete and accurate reconciliations for all accounts; and

      2.  Resolution of reconciling items in a timely manner.

      FINDINGS: Pursuant to an offer of settlement in which RCG neither admitted nor denied the violations, the Clearing House Risk Committee found that RCG violated the above rule by not resolving certain reconciling items in a timely manner.  In considering the sanction the Committee noted that the items did not (individually or as a whole) have a material effect on RCG’s net capital, excess net capital, excess segregated funds or excess secured funds.

      PENALTY: In accordance with the settlement offer, the Committee imposed a $25,000 fine, effective December 17, 2012, $12,500 of the fine will be waived if no further violations are found during the course of CME’s 2013 examination of RCG and if Exchange staff determines that RCG resolved the issues brought before the Clearing House Risk Committee. After a subsequent examination, the Clearing House Risk Committee waived $12,500 at the October 3, 2013 meeting.

      EFFECTIVE DATE: October 23, 2013