ICE Futures US has issued a disciplinary notice to StoneX Financial Inc.
A subcommittee of the Exchange’s Business Conduct Committee (BCC) found that StoneX Financial Inc. may have violated Exchange Rules 4.15(a), 4.15(b) and 4.15(c) by failing to include a unique identifier for registered operators in certain orders and trades transmitted to the Exchange.
For a period of more than four years, from February 2018 to early August 2022, StoneX, acting as a Futures Commission Merchant, failed to assign, register and populate unique identifiers (Tag 116) for an extensive number of orders that submitted and traded on the Stock Exchange.
Specifically, some customers using third-party trading interface software were improperly assigned the same generic identifier for Tag 116 on orders and transactions made on Exchange.
The BCC further held that StoneX may have additionally violated Rule 4.01(a) by failing to diligently oversee the accurate entry of unique identifiers for customers. and 4.01(b) by failing to establish, manage and enforce oversight systems, policies and procedures reasonably designed to achieve compliance with the Exchange Rules.
Under the terms of the settlement, in which StoneX neither admitted nor denied the alleged rule violations, StoneX agreed to pay a $300,000 monetary penalty.
The effective date of the settlement is December 14, 2023.