Pursuant to the provisions of Cboe Futures Exchange, LLC (CFE) Rule 703, UBS Securities LLC has submitted a Consent Letter to propose a settlement of alleged rule violations.
On or about January 26, 2023, UBS Securities personnel entered an order on the February 2023 / March 2023 Cboe Volatility Index futures calendar into the company’s automated trading system for the purpose of checking market data connectivity and without the intention of executing bona fide trades. The order caused the company’s automated trading system to submit two subsidiary orders to the Exchange.
This conduct constitutes a violation of CFE Rule 620(b)(iv) by UBS Securities, as the firm entered orders that were not entered for the purpose of executing bona fide trades and resulted in the submission of actionable messages that had the potential to disrupt other market participants.
In light of the alleged rule violations, the company agreed to a $10,000 fine.