StoneX Gets $20,000 Fine for Alleged Trade Transfer Violations

The company did not admit or deny the allegations.

The Chicago Board of Trade (CBOT), a designated contract maker for CME Group, has penalized StoneX Financial with a $20,000 fine over allegations of violating its trade transfer rule.

The official notice issued on Friday detailed that a CBOT panel found that StoneX has transferred ‘positions between customer accounts with different beneficial ownership and without appropriate Exchange approval’ while acting as a clearinghouse. 

The alleged mishap happened on October 29 and October 30, 2019.

“The transfers were not made to reconcile an error, omission or outtrade,” the announcement noted.

It is to be noted that, though StoneX accepted the penalty, it neither accepted nor denied the allegations. 

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Further, the panel detailed that the clearinghouse self-reported the violations to the exchange.

A Major Player in Trade Execution

Previously known as INTL FCStone, StoneX offers institutional-grade financial services infrastructure to exchange platforms across the world. Its services include execution, post-trade settlement, clearing and custody.

Its clients use the global financial services network to pursue trading opportunities, make investments, manage their market risk and improve their performance.

StoneX’s stake in the forex market was further raised by its acquisition of GAIN Capital earlier this year for $236 million. Finance Magnates recently reported that the company recognized an $81.8 million bargain purchase on that acquisition. GAIN operates two major UK-based forex trading platforms: and City Index.

Meanwhile, the New York-headquartered company reported excellent financials for the last quarter. Its total quarterly operating revenue went up 19 percent to $342.1 million, with a net of $226.2 million. The quarterly income of the company increased by 185 percent to $77.4 million.

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