CME Punishes StoneX for Rules Violation
- The Group imposed a penalty on StoneX Financial for failing to meet the documentation requirements.
CME Group announced that it has fined StoneX, a financial services company, for a rule violation. The Group mentioned that StoneX failed to properly document orders.
According to the official details of the notice, between 1 April 2020 and 30 June 2020, StoneX did not comply with documentary requirements outlined by CME in Market Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term Advisory Notice (MRAN).
The Group mentioned that the orders executed through Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term Operation Suspense Accounts were not properly documented and due to that reason StoneX was issued a $4,000 fine for its violation of MRAN 2011-5.
“If a general suspense account is used rather than a customer-specific or EAM-specific account, the Execution Operation must create, prior to order entry, a written or electronic record of the order in accordance with Rule 536.B.1. The order must reflect the time of receipt of the order and a customer-specific or EAM-specific account designation. During the period of April 1, 2020, through June 30, 2020, StoneX Financial Inc. violated the requirements of Market Regulation Advisory Notice (MRAN) 2011-5 by failing to meet the documentation requirements for orders entered using Execution Operation Suspense Accounts,” CME Group mentioned in the official notice.
“On December 16, 2020, StoneX Financial Inc., pursuant to Rule 512 ('Reporting Infractions'), was issued a $4,000 fine for its violation of MRAN 2011-5. The allocation of the fine across exchanges is based on the activity at each Designated Contract Market,” CME added.
StoneX Rebranding
The New York-based financial services company announced the change of its stock ticker symbol in 2020 after the company rebranded from INTL FCStone to StoneX earlier this year. Finance Magnates earlier reported about a penalty imposed by The Chicago Board of Trade (CBOT) on StoneX for violations related to trade transfer.
StoneX is currently offering institutional-level financial services to exchange platforms worldwide, including execution, post-trade settlement, and clearing. StoneX completed the acquisition of GAIN Capital Holdings earlier this year and reported a significant spike in FX Revenue after the completion of its acquisition.
CME Group announced that it has fined StoneX, a financial services company, for a rule violation. The Group mentioned that StoneX failed to properly document orders.
According to the official details of the notice, between 1 April 2020 and 30 June 2020, StoneX did not comply with documentary requirements outlined by CME in Market Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term Advisory Notice (MRAN).
The Group mentioned that the orders executed through Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term Operation Suspense Accounts were not properly documented and due to that reason StoneX was issued a $4,000 fine for its violation of MRAN 2011-5.
“If a general suspense account is used rather than a customer-specific or EAM-specific account, the Execution Operation must create, prior to order entry, a written or electronic record of the order in accordance with Rule 536.B.1. The order must reflect the time of receipt of the order and a customer-specific or EAM-specific account designation. During the period of April 1, 2020, through June 30, 2020, StoneX Financial Inc. violated the requirements of Market Regulation Advisory Notice (MRAN) 2011-5 by failing to meet the documentation requirements for orders entered using Execution Operation Suspense Accounts,” CME Group mentioned in the official notice.
“On December 16, 2020, StoneX Financial Inc., pursuant to Rule 512 ('Reporting Infractions'), was issued a $4,000 fine for its violation of MRAN 2011-5. The allocation of the fine across exchanges is based on the activity at each Designated Contract Market,” CME added.
StoneX Rebranding
The New York-based financial services company announced the change of its stock ticker symbol in 2020 after the company rebranded from INTL FCStone to StoneX earlier this year. Finance Magnates earlier reported about a penalty imposed by The Chicago Board of Trade (CBOT) on StoneX for violations related to trade transfer.
StoneX is currently offering institutional-level financial services to exchange platforms worldwide, including execution, post-trade settlement, and clearing. StoneX completed the acquisition of GAIN Capital Holdings earlier this year and reported a significant spike in FX Revenue after the completion of its acquisition.