The international derivatives market The CME Group has published a notice of disciplinary measures against HSBC Securities (USA) Inc.
Pursuant to a settlement offer in which HSBC neither admitted nor denied the finding or rule violation underlying the penalty, on June 6, 2024, the Clearing House Risk Committee (CHRC) found that HSBC contractually agreed for a period of in which the company’s full discretion to determine when and under what conditions the positions could be liquidated was restricted. The CHRC concluded that HSBC violated CME Rule 930.K.1.
The CHRC also found that HSBC has since corrected the finding and the reported customer agreement now complies with Exchange rules.
Under the settlement offer, CHRC imposed a $25,000 fine.
The effective date of the notice is June 7, 2024.