NOTICE of DISCIPLINARY ACTION

FILE NO.:                   23-CH-2314

MEMBER FIRM:         Direct Access USA LLC      

CME Rules:                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:

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

a. Statement of Segregation Requirements and Funds in Segregation;

b.  Statement of Secured Amounts and Funds Held in Separate Accounts; and

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4. Preparing complete and materially accurate daily segregation, secured 30.7 and Cleared Swaps Customer amount computations in a timely manner.

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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;

2.  Resolution of reconciling items in a timely manner; and                                                       

FINDINGS:                  Pursuant to an offer of settlement in which Direct Access USA LLC neither admitted nor denied the rule violations upon which the penalty is based, on August 17, 2023, the Clearing House Risk Committee found that Direct Access USA LLC violated CME Rules 971.A.2.a., 971.A.2.b., 971.A.4., 980.B.1. and 980.B.2.

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

EFFECTIVE DATE:    August 18, 2023