• 18-CH-1801

      • #
      • 18-CH-1801
      • Notice Date
      • 29 June 2018
      • Effective Date
      • 29 June 2018
    •  FILE NO.:                     18-CH-1801                              

      MEMBER FIRM:           Wedbush Securities Inc.

      CBOT RULES:              951.      DISCLOSURE REQUIREMENTS

                                        Each clearing member must comply with all disclosure requirements set forth in                                            applicable CFTC and NFA Rules and Regulations.

                                             970.     FINANCIAL REQUIREMENTS

      A.    Subject to exemptions granted by Exchange staff, all clearing members, including non-FCMs, must comply with the requirements    set forth in CFTC Regulations 1.10, 1.12, 1.17 and 1.18.

                                             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:

                                       1. Maintaining sufficient funds at all times in segregation, secured   30.7 and Cleared Swaps Customer accounts.

                                             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 accounts.

      FINDINGS:                    Pursuant to an offer of settlement in which Wedbush Securities Inc. neither admitted nor denied the rule violations upon which the penalty is based, on June 28, 2018, the Clearing House Risk Committee found that Wedbush Securities Inc. violated CBOT Rules 951., 970.A., 971.A., 971.A.1. and 980.B.

      PENALTY:                    In accordance with the settlement offer, the Clearing House Risk Committee imposed a $100,000 fine.

      EFFECTIVE DATE:       June 29, 2018