​Cboe Fines X-Change Financial Access for Alleged Rule Violations

Cboe Exchange Inc. has posted a disciplinary notice against X-Change Financial Access LLC (XFA) for alleged violations of exchange rules.

On or about May 8, 2025, XFA, acting through an employee floor broker, traded through the market provided by three In-Crowd Market Participants for VIX May 21, 2025 $35.00 calls, May 21, 2025 $75.00 calls, and July 16, 2025 $35.00 calls.

The firm announced the structured spread to the VIX trading crowd, received a price in response, failed to cancel the structured spread order, and then traded it as an Automated Improvement Mechanism auction, fully crossed, at an inferior price compared with the market provided by the ICMPs.

Cboe said this conduct violated Exchange Rules 5.85, 5.87, and 5.91, as XFA traded through a market provided by ICMPs who had expressed interest in the order and exceeded any applicable participation entitlement without first determining whether that interest had been exhausted.

The firm consented to a censure and a monetary fine of $30,000.