NOTICE of DISCIPLINARY ACTION

FILE NO.:                   22-CH-2209

MEMBER FIRM:         StoneX Financial Inc.          

CME Rules:                930. PERFORMANCE BOND REQUIREMENTS: ACCOUNT HOLDER    

                                   LEVEL

930.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.

Performance bond systems other than the SPAN system may be used to meet Exchange performance bond requirements if the clearing member can demonstrate that its system will always produce a performance bond requirement equal to or greater than the SPAN performance bond requirements.

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930.F.  Release of Excess Performance Bond

Subject to exceptions granted by Exchange staff, clearing members may only release performance bond deposits from an account if such deposits are in excess of initial performance bond requirements

FINDINGS:                 Pursuant to an offer of settlement in which StoneX Financial Inc. neither admitted nor denied the rule violations upon which the penalty is based, on January 19, 2023, the Clearing House Risk Committee found that StoneX Financial Inc. violated CME Rules 930.A. and 930.F.

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

EFFECTIVE DATE:    January 20, 2023