Wedbush Securities Inc.
CME RULE VIOLATIONS:
Rule 432 (“General Offenses”) (in part)
It shall be an offense:
L.3. To fail to produce any books or records requested by duly authorized Exchange staff, in the format and medium specified in the request, within 10 days after such request is made or such shorter period of time as determined by the Market Regulation Department in exigent circumstances.
W. For any party to fail to diligently supervise its employees and agents in the conduct of their business relating to the Exchange.
Pursuant to an offer of settlement in which Wedbush Securities Inc. (“Wedbush”) neither admitted nor denied the rule violations upon which the penalty is based, on March 28, 2017, a Panel of the Chicago Mercantile Exchange Business Conduct Committee (“Panel”) found that between March 2015 and January 2016, Market Regulation staff issued requests to Wedbush for the production of records, documents and information related to regulatory inquiries. Wedbush, acting principally through its former Chief Compliance Officer, failed to respond in a timely manner to numerous requests.
The Panel concluded that Wedbush thereby violated CME Rules 432.L.3 and 432.W.
In accordance with the settlement offer, the Panel ordered Wedbush to pay a fine of $55,000.
March 30, 2017
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