• NOTICE OF DISCIPLINARY ACTION

      • #
      • 14-CH-1401
      • Effective Date
      • 20 June 2014
    • CHICAGO BOARD OF TRADE

      NOTICE OF DISCIPLINARY ACTION

      FILE NO.: 14-CH-1401

      MEMBER FIRM: BNP Paribas Securities Corp.

      CBOT RULES: 

      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:  

      4. Preparing complete and materially accurate daily segregation, secured 30.7 and Cleared Swaps Customer amount computations in a timely manner.

      980. REQUIRED RECORDS AND REPORTS

      B. Each clearing member shall maintain an adequate accounting system, internal accounting controls, and procedures for safeguarding customer and firm assets. This includes, but is not limited to, the following:

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

      2. Resolution of reconciling items in a timely manner; and

      3. Prevention of a material inadequacy as defined in CFTC Regulation 1.16(d)(2).

      FINDINGS: Pursuant to an offer of settlement in which BNP Paribas Securities Corp. neither admitted nor denied the rule violations upon which the penalty is based, on June 19, 2014, the Clearing House Risk Committee found that BNP Paribas Securities Corp. violated CBOT Rules 971.A.4 and 980.B.

      PENALTY: In accordance with the settlement offer, the Committee fined BNP Paribas Securities Corp. $75,000.

      EFFECTIVE DATE: June 20, 2014