NOTICE OF SUMMARY ACTION

FILE NO:

DQA-18-9540

MEMBER FIRM:

MERRILL LYNCH, PIERCE, FENNER & SMITH, INC.

RULE VIOLATION:

Rule 576. IDENTIFICATION OF GLOBEX TERMINAL OPERATORS

Each Globex terminal operator shall be identified to the Exchange, in the manner prescribed by the Exchange, and shall be subject to Exchange rules.  If user IDs are required to be registered with the Exchange, it is the duty of the clearing member to ensure that registration is current and accurate at all times. Each individual must use a unique user ID to access Globex.  In no event may a person enter an order or permit the entry of an order by an individual using a user ID other than the individual’s own unique user ID.

FINDINGS:

During the period of October 1, 2017 through December 31, 2017, Merrill Lynch, Pierce, Fenner & Smith, Inc. violated Rule 576 by failing to maintain current and accurate registration information in the Exchange Fee System.

PENALTY:

On May 9, 2018, Merrill Lynch, Pierce, Fenner & Smith, Inc., pursuant to Rule 512 (“Reporting Infractions”), was collectively issued a $4,000 fine by the Rule 512 Committee for its violations of Rule 576, as follows:  CME - $3,000; NYMEX - $1,000.

EFFECTIVE DATE:

May 25, 2018