The international derivatives market The CME Group has published a notice of disciplinary action against Wells Fargo Securities, LLC (WFS).
Pursuant to a settlement offer in which WFS consented to the filing of findings by the Clearing House Risk Committee (CHRC), but neither admitted nor denied the findings or the rule violations underlying the penalty, the CHRC found that WFS:
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is contractually agreed for margin calls to be held over a period of more than one business day; and
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contractually agreed upon for a period of time during which the company’s full discretion to determine when and under what conditions the positions could be liquidated was restricted.
The CHRC concluded that WFS violated CME Rules 930.E.1., 930.F. and 930.K.1. The CHRC also found that WFS has since amended the relevant customer agreement.
Under the settlement offer, CHRC imposed a $25,000 fine.
The effective date of the notice is March 15, 2024.