NOTICE OF DISCIPLINARY ACTION

FILE NO.:                   23-CH-2301

MEMBER FIRM:         Marex North America LLC  

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

F.   Release of Excess Performance Bond

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

 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:

4. Completely and accurately computing and recording the balances in the net capital computation including capital requirement;

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;           

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 March 16, 2023, the Clearing House Risk Committee found that Marex North America LLC violated CME Rules 930.F., 970.A.4., 971.A. and 971.A.2.a.

PENALTY:      In accordance with the settlement offer, the Committee imposed a $150,000 fine.

EFFECTIVE DATE:    March 17, 2023