NOTICE OF SUMMARY ACTION

FILE NO.:

DQA-20-0382

MEMBER FIRM:

WEDBUSH SECURITIES, INC.

RULE VIOLATION:

CME GROUP RA1912-5 ("DOCUMENTATION OF CUSTOMER ORDERS AND SUBMISSION OF SUSPENSE ACCOUNTS ON CME GLOBEX”)

Recognizing that on occasion a customer-specific or EAM-specific account may not be available at the time an order is entered into Globex, de minimis usage of an Execution Operation Suspense Account will be permitted, provided the following requirements are met.

1. If a general suspense account is used rather than a customer-specific or EAM-specific account, the Execution Operation must create, prior to order entry, a written or electronic record of the order in accordance with Rule 536.B.1. The order must reflect the time of receipt of the order and a customer-specific or EAM-specific account designation.

2. The general suspense account must be unique to the desk or group of the Execution Operation submitting the order into Globex.

FINDINGS: 

During the period of January 1, 2020 to March 31, 2020, Wedbush Securities, Inc. violated CME Group RA1912-5 by failing to meet the documentation requirements for orders entered using Execution Operation Suspense Accounts.

PENALTY:

On August 26, 2020, Wedbush Securities, Inc., pursuant to Rule 512 (“Reporting Infractions”), was issued a $2,500 fine for its violation of CME Group RA1912-5.

EFFECTIVE DATE:

September 11, 2020