CME fines BNP Paribas Securities for alleged violations of CBOT rules

The international derivatives market CME Group published a notice of disciplinary measures against BNP Paribas Securities Corp.

Pursuant to a settlement offer in which BNP Paribas Securities consented to the introduction of findings by the Clearing House Risk Committee (CHRC), but neither admitted nor denied the findings or rule violations underlying the penalty, the CHRC found that BNP Paribas Securities:

1. allowed an account to trade while under-margined for an unreasonable amount of time.

2. improperly issued and canceled performance bond calls;

3. failed to maintain accurate written records of certain performance bond calls;

4. funds were disbursed when excess yielding bond funds were not available; and

5. miscalculated the segregated and secured 30.7 calculations of residual interest claims.

The CHRC concluded that BNPPSC violated CBOT Rules 930.D., 930.E.1., 930.E.2., 930.E.3., 930.F., 970.A.4. and 971.A.

Under the settlement offer, CHRC imposed a $100,000 fine.

The effective date of the notice is June 7, 2024.