NOTICE OF DISCIPLINARY ACTION

FILE NO.:                   22-CH-2205

MEMBER FIRM:         Marex North America LLC

CME Rules:                930.    PERFORMANCE BOND REQUIREMENT: ACCOUNT HOLDER                                                     LEVEL

E.   Calls for Performance Bond

1. Clearing members must issue calls for performance bond that would bring an account up to the initial performance bond requirement: a) when performance bond equity in an account initially falls below the maintenance performance bond requirement; and b) subsequently, when performance bond equity plus existing performance bond calls in an account is less than the maintenance performance bond requirement.

Such calls must be made within one business day after the occurrence of the event giving rise to the call. Clearing members may call for additional performance bond at their discretion. Notwithstanding the foregoing, a clearing member is not required to call for or collect performance bond for day trades.

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. This includes, but is not limited to, the following:

 1.  Maintenance of minimum capital requirements of at least $5 million except that a clearing member that is a bank must maintain minimum Tier I Capital (as defined in accordance with regulation applicable to the relevant bank) of at least $5 billion;

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:

 FINDINGS:                 Pursuant to an offer of settlement in which Marex North America LLC neither admitted nor denied the rule violations upon which the penalty is based, on November 10, 2022, the Clearing House Risk Committee found that Marex North America LLC violated CME Rules 930.E.1., 970.A.1. and 971.A.

PENALTY:                  In accordance with the settlement offer, the Committee imposed a $75,000 fine.

EFFECTIVE DATE:    November 11, 2022