ICE Futures US Announces Settlement of Charges Against ARB Trading Group North LP.
A sub-committee of the Stock Exchange’s Business Conduct Commission (BCC) decided that from January 2023 to February 2023 (the “Relevant Period”), ARB Trading, through the actions of one of its former traders, may have breached the Exchange Rules 4.02(l)(1)(A), 4.02(l)(1)(C), 4.02(l)(2) and 4.04.
BCC found that during the Relevant Period, the former trader appeared to have engaged in a pattern of entering a large order at a price level on one side of the order book while trading small orders on the opposite side. In each case, the trader deleted the larger order shortly after the smaller orders were traded. The activity of the former trader indicated that the large orders were not entered for the purpose of trading.
The BCC further found that despite ARB Trading’s existing supervisory processes and procedures and surveillance system, ARB Trading may have violated Exchange Rule 4.01(a) by failing to ensure that its surveillance and monitoring systems were operating adequately to record the due transactions.
Under the terms of the settlement, in which ARB Trading neither admitted nor denied the alleged rule violations, ARB Trading agreed to pay a monetary penalty of $115,000 and disgorgement of $3,206.25.