• Rule 980.F. Required Books and Records - Administrative Fees

      • To
      • Chief Executive Officers, Chief Financial Officers, Chief Compliance Officers
      • From
      • Financial and Regulatory Surveillance Department, Clearing House Division
      • #
      • FRB 16-01
      • Notice Date
      • 18 February 2016
      • Effective Date
      • 01 March 2016
    • Effective March 1, 2016, pending all relevant regulatory review periods, CME, CBOT and NYMEX will adopt changes to existing Rule 980.F., which enable CME Group’s Financial and Regulatory Surveillance Department (“FRS”) to impose an administrative fee of $1,000 to be assessed for the initial failure to timely file a required submission, plus an additional $1,000 for each business day that such financial information is not submitted.  Financial information covered by this rule includes the monthly Form 1-FR or FOCUS Report; the annual certified financial statement; daily segregation, secured 30.7 and cleared swaps customer statements; semi-monthly Segregated Investment Detail Reports and any other prescribed additional reporting such as a daily net capital computation.

      FRS will continue to evaluate each late submission to determine if its delay indicates weaknesses in the FCM’s policies, procedures or controls.  Where the late submission of reports or other information may be due to insufficient internal accounting controls or procedures, the clearing member may be subject to Clearing House Risk Committee review and action in lieu of, or in addition to, the administrative fee.  FRS may, in its discretion, waive assessment of the administrative fee. 

      The amended rule is stated below.    

      980. REQUIRED RECORDS AND REPORTS

       

      F.         Exchange staff may impose administrative fees upon clearing members for late submissions of reports and other information required to be submitted to the Financial and Regulatory Surveillance Department by Exchange Rules.  The administrative fees permitted by this Rule 980.F. shall not exceed $1,000 for the initial late submission, plus $1,000 for each additional business day that such report or information is not submitted.  Where the late submission of reports or other information may be due to insufficient internal accounting controls or procedures, the Clearing House Risk Committee may impose disciplinary sanctions in lieu of, or in addition to, the administrative fees.

      If you have any questions, please contact FRS at (312) 930-3230.