NOTICE OF SUMMARY ACTION

FILE NO.:

CBT-RSRH-18-5228

MEMBER FIRM:

HSBC SECURITIES (USA) INC

CBT RULES:

CBT Rule 807. Open Long Positions During Delivery Month

At such times and in such manner as shall be prescribed by the Manual, clearing members shall submit a complete and accurate record of dates of all open purchases for use in making deliveries. Clearing members shall be fully responsible for inventories submitted to the Clearing House. This rule shall not apply to trading in options contracts.

FINDINGS:

During the month of August 2018, HSBC Securities (USA) Inc. inaccurately reported long positions eligible for delivery in the August 2018 KC Wheat and August 2018 Wheat futures contract.

PENALTY:

On September 11, 2018, the Rule 512 Committee, pursuant to Rule 512, assessed a fine in the amount of $1,500 against HSBC Securities (USA) Inc. for its violation of Rule 807.

EFFECTIVE DATE:

October 1, 2018