ICE Futures US published a disciplinary notice against OTC Europe LLP.
On 21 February 2024, a sub-committee of the Exchange Business Conduct Committee (BCC) found that on several occasions between January 2022 and April 2022 (“Relevant Period”), OTC Europe may have breached the following Exchange Rules for certain block trades:
- 4.07(c) by misreporting execution time and submitting trades beyond the 15 minute reporting window.
- 4.07(a)(ii)(A) due to failure to comply with private trading requirements;
- legacy 6.08(b)(i) by failing to comply with the order ticket requirements; and
- 6.07(a)(iii) due to failure to comply with general recordkeeping requirements.
The BCC further found that, during the Relevant Period, OTC Europe may have additionally breached rule 4.01(a) by failing to diligently supervise the block trading activities of its employees and rule 4.01(b) by failing to establish, manage and impose supervisory systems, policies and procedures, which are reasonably designed to achieve compliance with the Exchange Rules.
Under the terms of the settlement, in which OTC Europe neither admitted nor denied the alleged rule violations, OTC Europe agreed to pay a $120,000 monetary penalty.