NOTICE OF SUMMARY ACTION

FILE NO.:

CBOT CASE-22-1587

MEMBER FIRM:

Direct Hedge Danmark Fondsmaeglerselskab AS

CBOT 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-2201-5 (in part)

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

FINDINGS:

On six occasions in April 2022, Direct Hedge Danmark Fondsmaeglerselskab AS did not report block trades timely, and on 13 occasions in April 2022 did not report an accurate execution time for the block trade to the Exchange.  These block trades were executed in the June, August, September, October, November, and December 2022 Urea (Granular) FOB US Gulf Futures; July, August, and September Urea (Granular) FOB Egypt Futures; April 2022 Urea (Granular) FOB Middle East Futures; and September 2022 DAP FOB NOLA Futures. 

PENALTY:

On September 6, 2023, pursuant to Rule 512, a fine in the amount of $5,000 was assessed against Direct Hedge Danmark Fondsmaeglerselskab AS for its violations of CBOT Rule 526 and CBOT Rule 526.F.

EFFECTIVE DATE:

October 2, 2023