NOTICE OF SUMMARY ACTION

FILE NO:

NYMEX RSRH-23-7806

MEMBER FIRM:

StoneX Financial Inc.

RULE VIOLATION:

854. CONCURRENT LONG AND SHORT POSITIONS (In pertinent part)

B. Concurrent long and short positions in physically delivered contracts subject to spot month position limits that are held by the same owner during the time that spot month position limits are in effect must be offset by transactions executed in the market, by allowable privately negotiated transactions, or fulfilled through the normal delivery process, provided however that trades may be offset via netting, transfer or position adjustment to correct a bona fide clerical or operational error on the day the error is identified and the quantity of the offset does not represent more than  two percent of the reported open interest in the affected futures contract month.  Permissible Exceptions Notwithstanding the foregoing:  Trades may be transferred for offset if the trade date of the position being transferred is the same as the transfer date; 2. an account that becomes concurrently long and short as a result of a futures position that results from an option assignment will be allowed one business day to net such positions; or, 3. Where the Chief Regulatory Officer or his designee determines, in their respective sole discretion, that permitting an offset via netting, transfer or position adjustment in excess of two  percent of the reported open interest will not adversely impact either the affected market or any persons holding open positions in the affected market...  

Rule 811. Position Change Data 

Position change data must be submitted to the Clearing House each trading day not later than the time specified by the Clearing House. Position change data will be in such form and contain such information as prescribed by the Clearing House. When requested, the identification of accounts will be made available to the Financial and Regulatory Surveillance Department.

FINDINGS:

On trade date October 30, 2023, StoneX Financial, Inc. inaccurately reported its open interest in the November 2023 NYMEX NY Harbor ULSD (HO) Futures contract resulting in an overstatement, in violation of Rule 811. 

On trade date October 31, 2023, StoneX Financial, Inc. submitted an open interest adjustment in the November 2023 NYMEX NY Harbor ULSD (HO) Futures contract, in violation of Rule 854.B.

PENALTY:

On November 15, 2023, pursuant to Rule 512, a fine in the amount of $3,500 was assessed again StoneX Financial Inc. for its violations of Rules 811 and 854.B.

EFFECTIVE DATE:

December 1, 2023