• NOTICE OF DISCIPLINARY ACTION

      • #
      • CME 20-1283-BC
      • Effective Date
      • 02 September 2021
    • NON-MEMBER:           

      Banca Patrimoni Sella & C. SpA

      CME RULE VIOLATIONS:             

      Rule 534 Wash Trades Prohibited

      No person shall place or accept buy and sell orders in the same product and expiration month, and, for a put or call option, the same strike price, where the person knows or reasonably should know that the purpose of the orders is to avoid taking a bona fide market position exposed to market risk (transactions commonly known or referred to as wash trades or wash sales). Buy and sell orders for different accounts with common beneficial ownership that are entered with the intent to negate market risk or price competition shall also be deemed to violate the prohibition on wash trades. Additionally, no person shall knowingly execute or accommodate the execution of such orders by direct or indirect means.

      Rule 432 General Offenses

      It shall be an offense:

      W. for any party to fail to diligently supervise its employees and agents in the conduct of their business relating to the Exchange.

      FINDINGS:                    

      Pursuant to an offer of settlement in which Banca Patrimoni Sella & C. SpA neither admitted nor denied the rule violations upon which the penalty is based, on August 31, 2021, a Panel of the Chicago Mercantile Exchange (“CME”) Business Conduct Committee (“Panel”) found that on June 10, 2019, and December 16, 2019, Banca Sella traders entered buy and sell orders in the December 2019 Euro/US Dollar 1180 Call and the May 2020 Euro/US Dollar 1130 Call options on futures markets that matched opposite each other for accounts with common beneficial ownership. The Banca Patrimoni Sella traders entered the opposing orders to transfer positions between accounts held by its clients. Banca Patrimoni Sella knew or reasonably should have known that the purpose of the orders was to avoid taking a bona fide market position exposed to market risk. Additionally, the Panel found that Banca Patrimoni Sella failed to diligently supervise its employees by not properly advising and training them as to Exchange rules pertaining to wash trades.

      The Panel concluded that Banca Patrimoni Sella thereby violated CME Rules 534 and 432.W.

      PENALTY:                   

      In accordance with the settlement offer, the Panel ordered Banca Patrimoni Sella to pay a fine of $35,000.

      EFFECTIVE DATE:                         

      September 2, 2021