X-Change Financial Access, LLC agreed to pay a $12,500 fine as part of a settlement with Cboe Exchange, Inc.
The company has neither admitted nor denied that violations of the Exchange Rules have been committed.
During the Review Period, the firm failed to report 32 trades executed on the floor within 90 seconds of execution.
These acts constitute violations of Exchange Rule 6.1 by the Company, as the Company failed to timely report 32 trades executed on the floor within 90 seconds of execution.
During the review period, the company failed to establish, maintain, and enforce written supervisory procedures (“WSP”) and a system for implementing such procedures reasonably designed to prevent and detect violations of applicable Exchange rules that require trades to be reported to the Exchange within 90 seconds of execution.
Specifically, although the Company had WSPs that required compliance with Cboe trade reporting rules, the Company did not have WSPs to actually review and ensure compliance with those rules. In addition, the company’s WSPs reported compliance with Cboe Rule 6.51, which was renumbered as Cboe Rule 6.1 effective October 7, 2019.
These acts and practices constitute violations of Exchange Rule 8.16 by the company because the company failed to implement, maintain and enforce the WSPs, and a system for implementing such procedures, reasonably designed to prevent and detect violations of the timely transaction reporting requirement Exchange Rule 6.1.
The company has no prior relevant disciplinary history specifically related to timely reporting.
In addition to the fine, the company has agreed to a reprimand.