NOTICE OF SUMMARY ACTION

FILE NO.:

CBOT DQA-24-1502

MEMBER FIRM:

STONEX FINANCIAL, INC.

RULE VIOLATIONS:

561. REPORTS OF LARGE POSITIONS (In pertinent part)

Clearing members, omnibus accounts and foreign brokers shall submit to the Exchange a daily report of all positions required to be reported as set forth in the Position Limit, Position Accountability and Reportable Level Table in the Interpretations Section at the end of Chapter 5.

Positions at or above the reportable level in a particular expiration month of a futures contract, or in all puts or in all calls of a particular option contract expiration month, are required to be reported. For an account with reportable positions in a particular contract, all positions, regardless of size, in any contract month and in any contract that aggregates with that contract must be reported…

The Exchange may require that more than one large trader position report be electronically submitted daily. The Business Conduct Committee or the Market Regulation Department may require reports or additional account identification from any clearing member, omnibus account or foreign broker on a lesser number of positions than reflected in the Position Limit, Position Accountability and Reportable Level Table.

807. Open Long Positions During Delivery Month

At such times and in such manner as shall be prescribed by the Manual, clearing members shall submit a complete and accurate record of dates of all open purchases for use in making deliveries. Clearing members shall be fully responsible for inventories submitted to the Clearing House. This rule shall not apply to trading in options contracts.

FINDINGS:

During the month of April 2024, StoneX Financial, Inc. submitted large trader position adjustments after the prescribed deadline in several instances in violation of Rule 561, and inaccurately reported long positions eligible for delivery in the May 2024 Soybean Oil futures contract and May 2024 Wheat futures contract in violation of Rule 807.

PENALTY:

On May 16, 2024, Stonex Financial Inc., pursuant to Rule 512 (“Reporting Infractions”), was collectively issued a $10,000 fine for its violations of Rules 561 and 807 (see companion case NYMEX DQA-24-1502), as follows:  CBOT - $8,000, and NYMEX - $2,000.

EFFECTIVE DATE:

June 4, 2024