NOTICE OF DISCIPLINARY ACTION

FILE NO.:

COMP-18-3310 

MEMBER FIRM:

Optiver VOF 

CME RULE VIOLATION:

526.F. BLOCK TRADES 

Unless otherwise agreed to by the principal counterparties to the block trade, the seller, or, in the case of a brokered transaction, the broker handling the block trade, must ensure that each block trade is reported to the Exchange within the time period and in the manner specified by the Exchange. The report must include the contract, contract month, price, quantity of the transaction, the respective clearing members, the time of execution, and, for options, strike price, put or call and expiration month. The Exchange shall promptly publish such information separately from the reports of transactions in the regular market. 

FINDINGS:

On two occasions in November 2018, Optiver VOF did not report a block trade in a timely manner to the Exchange. These block trades were executed in December 2018 Premium Quoted European Style Options on British Pound/US Dollar Futures and December 2018 Premium Quoted European Style Options on Japanese Yen/US Dollar Futures. 

PENALTY:

On December 12, 2018, the Rule 512 committee, pursuant to Rule 512, assessed a fine in the amount of $1,000 against Optiver VOF for its violation of CME Rule 526.F.  

EFFECTIVE DATE:

January 14, 2019