NOTICE OF SUMMARY ACTION

FILE NO.:

RSRH-22-6633

MEMBER FIRM:

BNP Paribas Securities Corporation

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.

MRAN RA-2202-5 (in part)

Market participants must accurately report the execution time of the block trade.

FINDINGS:

On two occasions in June 2022, BNP Paribas Securities Corporation did not report block trades in a timely manner or in four instances with an accurate execution time to the Exchange. These block trades were executed in June 2022 S&P 500 – Consumer Staples Sector Index and September 2022 S&P 500 – Consumer Staples Index, September 2022 S&P 500 – Utility Sector Index, and September 2022 S&P 500 – Health Care Sector Index.

PENALTY:

On June 15, 2022, pursuant to Rule 512, a fine in the amount of $1,500 was assessed against BNP Paribas Securities Corporation for its violation of CME Rule 526 and CME Rule 526.F.

EFFECTIVE DATE:

July 15, 2022