NOTICE OF SUMMARY ACTION

FILE NO.:

RSRH-19-5544

MEMBER FIRM:

SCB Brokers SA

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)

Market participants must accurately report the execution time of the block trade.

FINDINGS:

On four occasions in July 2019, SCB Brokers SA did not report a block trade in a timely manner or with an accurate execution time to the Exchange. These block trades were executed in July 2019 Black Sea Wheat Financially Settled (Platts) Futures, September 2019 Black Sea Wheat Financially Settled (Platts) Futures, October 2019 Black Sea Wheat Financially Settled (Platts) Futures, November 2019 Black Sea Corn Financially Settled (Platts) Futures, November 2019 Black Sea Wheat Financially Settled (Platts) Futures, and January 2020 Black Sea Corn Financially Settled (Platts) Futures.

PENALTY:

On September 16, 2019, pursuant to Rule 512, a fine in the amount of $2,500 was assessed against SCB Brokers SA for its violation of CBOT Rule 526, and CBOT Rule 526.F.