NOTICE OF SUMMARY ACTION

FILE NO:

CME DQA‐23-1118

MEMBER FIRM:

WEDBUSH SECURITIES INC.

RULE VIOLATION:

Rule 536.B.2 ("Globex Order Entry - Electronic Audit Trail Requirements for Electronic Order Routing/Front-End Systems")

Entities certified by the Exchange to connect an order routing/front-end system to the Globex platform through the CME iLink® gateway are responsible for creating an audit trail of each message entered into Globex. Clearing members guaranteeing a connection to Globex are responsible for maintaining or causing to be maintained the electronic audit trail for such systems. This electronic audit trail must be maintained for a minimum of 5 years and clearing members must have the ability to produce this data in a standard format upon request of Market Regulation.

Each such electronic audit trail must be complete and accurate and account for every electronic communication such system receives or generates, including any electronic communication such system receives from Globex.

FINDINGS:

Wedbush Securities Inc. failed to maintain a complete electronic audit trail for certain dates in September 2021 and February 2023.

PENALTY:

On February 8, 2023, Wedbush Securities Inc, pursuant to Rule 512 (“Reporting Infractions”), was issued a $1,000 fine for its violations of Rule 536.B.2

EFFECTIVE DATE:

February 24, 2023