StoneX Financial will pay a $20,000 fine after a CME Group panel found the firm failed to manage a customer’s natural gas futures trade properly, letting a short position run past the contract’s expiration.
The violation involved the handling of a customer’s short position that extended beyond the contract’s expiration, raising questions about the firm’s compliance procedures.
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Expired Contract and Rule Breach
The New York Mercantile Exchange Business Conduct Committee found that on November 26, 2024—the last trading day for the DEC24 NG futures—StoneX maintained a short position for a client who could not fulfill delivery obligations. The clearing member did not ensure the position was closed before expiration.
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“StoneX should have been aware that its customer was incapable of making delivery, and did not ensure that the customer’s position was liquidated prior to the expiration of trading,” the exchange explained. “The Panel found that StoneX thereby violated NYMEX Rule 716.”
Settlement and Penalty
StoneX neither admitted nor denied the violation as part of a settlement offer. In line with the settlement, the NYMEX panel imposed a $20,000 fine, effective September 19, 2025.
The case highlighted the responsibilities of clearing members in managing customer positions for physically settled contracts, particularly near expiration. It also underscored the potential financial and reputational consequences for firms that fail to monitor clients’ delivery capabilities.
Early this year, StoneX Group received approval from CME Group to operate a CME-registered depository at its New York vault. The move allows StoneX to store and deliver key precious metals—including gold, silver, platinum, and palladium—under COMEX and NYMEX contracts.
Related: StoneX Boosts Investment Banking and Trading With Benchmark Acquisition
The company said the new offering aims to improve access for institutional traders, banks, and other market participants seeking regulated delivery solutions.
StoneX Group also acquired R.J. O’Brien & Associates, a U.S.-based futures brokerage firm, in a deal valued at approximately $900 million in equity. Under the agreement, R.J. O’Brien’s global operations will be integrated into StoneX, expanding the firm’s footprint in the futures market.
