• NOTICE OF DISCIPLINARY ACTION

      • #
      • 15-CR-0001
      • Effective Date
      • 18 June 2015
    • CHICAGO MERCANTILE EXCHANGE

      NOTICE OF DISCIPLINARY ACTION

      FILE NO.: 15-CR-0001

      MEMBER FIRM: Advantage Futures LLC

      CME RULE: 982.A.1. – Risk Management

      All clearing members must have written risk management policies and procedures in place to ensure they are able to perform certain basic risk and operational functions at all times. At a minimum, the following areas must be considered in the firm’s policies and procedures, depending on the firm’s size and its business and product mix:

      A. Trade Submission and Account Monitoring. Clearing members must have procedures in place to demonstrate compliance in the following areas for trades executed through both electronic platforms and open outcry:

      1. Monitoring the credit risks of accepting trades, including give-up trades, of specific customers.

      FINDINGS: Pursuant to an offer of settlement in which Advantage Futures LLC neither admitted nor denied the rule violation upon which the penalty is based, on June 18, 2015, the Clearing House Risk Committee found that Advantage Futures LLC violated CME Rule 982.A.1.

      PENALTY: In accordance with the settlement offer, the Clearing House Risk Committee fined Advantage Futures LLC $75,000.

      EFFECTIVE DATE: June 18, 2015