NOTICE OF DISCIPLINARY ACTION

CHICAGO MERCANTILE EXCHANGE

NOTICE OF DISCIPLINARY ACTION

FILE NO.:                    18-CH-1807      

MEMBER FIRM:           INTL FCStone Financial Inc.     

CME RULES:                930. PERFORMANCE BOND REQUIREMENTS: ACCOUNT HOLDER LEVEL

A.    Performance Bond System

The Standard Portfolio Analysis of Risk (“SPAN®”) Performance Bond System is the performance bond system adopted by the Exchange. SPAN-generated performance bond requirements shall constitute Exchange performance bond requirements. All references to performance bond within the rules of the Exchange shall relate to those computed by the SPAN system, except for cleared over-the-counter (“OTC”) foreign exchange (“FX”) and interest rate swap (“IRS”) transactions, where the Historical Value at Risk (“HVaR”) Performance Bond System is used for cleared OTC FX and IRS transaction performance bonds.        

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:

2. Computing, recording and reporting completely and accurately the balances in the:

a.     Statement of Segregation Requirements and Funds in  Segregation;

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.                    

FINDINGS:                    Pursuant to an offer of settlement in which INTL FCStone Financial Inc. neither admitted nor denied the rule violations upon which the penalty is based, on November 29, 2018, the Clearing House Risk Committee found that INTL FCStone Financial Inc. violated CME Rules 930.A., 971.A.2.a. and 980.B.1.

PENALTY:                    In accordance with the settlement offer, the Committee imposed a $50,000 fine.

EFFECTIVE DATE:       November 30, 2018