NOTICE OF SUMMARY ACTION

FILE NO.:

RSRH-19-5521

MEMBER FIRM:

JP Morgan Securities LLC

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-1906-5 (in part)

Please note that the execution time of a block trade is the time that the parties agree to the trade. Market participants must accurately report the execution time of the block trade. The reporting of inaccurate execution times may result in disciplinary action.

FINDINGS:

On more than one occasion in June 2019, JP Morgan Securities LLC did not report a block trade in a timely manner to the Exchange. These block trades were executed in June 2019 DJ US Real Estate Index.

PENALTY:

On August 8, 2019, the Rule 512 committee, pursuant to Rule 512, assessed a fine in the amount of $1,000 against JP Morgan Securities LLC for its violation of CBOT Rule 526 and CBOT Rule 526.F.