NOTICE OF SUMMARY ACTION

FILE NO:

CME DQA‐23-1253

MEMBER FIRM:

JB DRAX HONORE UK LTD.

RULE VIOLATION:

Rule 536.C Bunched Order and Orders Eligible for Post Execution Allocation

Bunched orders must be allocated and recorded in accordance with CFTC Regulation 1.35(b) and the NFA’s Interpretive Notice related to Compliance Rule 2-10. A bunched order for pit execution does not require the specific account number to be recorded at the time of order placement or upon the report of execution provided that 1) the order is being placed by an eligible account manager for multiple accounts eligible for post execution allocation or 2) a written, pre-determined allocation scheme has been provided to the futures commission merchant accepting or clearing the order prior to the time the order has been placed…

FINDINGS:

During the period of April 1, 2023 to June 30, 2023, JB Drax Honore UK Ltd. violated Rule 536.C by failing to use EAM-Specific Suspense Accounts and Customer-Specific Short Codes at order entry.

PENALTY:

On November 1, 2023, JB Drax Honore UK Ltd., pursuant to Rule 512 (“Reporting Infractions”), was collectively issued a $10,000 fine for its violations Rule 536.C. (see companion case CBOT DQA-23-1253);  CME - $5,000, CBOT - $5,000.

EFFECTIVE DATE:

November 14, 2023