NOTICE OF SUMMARY ACTION

FILE NO.:

RSRH-19-5521

MEMBER FIRM:

JP Morgan Securities LLC

COMEX 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)

When reporting a block trade to the CME ClearPort Facilitation Desk, the following information will be required:  Account numbers for each side of the trade.  

FINDINGS:

On 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 August 2019 Gold Futures.

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 COMEX Rule 526 and COMEX Rule 526.F.