BGC Settles Violations of Reporting Rules for $60,000

​The world's leading and most diverse derivatives marketplace CME Group has settled with BGC Financial, a subsidiary of BGC Partners, on a fine of $60,000 for regulatory violation charges.

CME detailed that during June 2019, BGC submitted multiple block trades in Gold and Silver futures and options spreads to the Exchange with inaccurate execution times. In some of these misreporting instances, the reported execution time of the block trade was the time the spread leg prices were determined rather than the time of the trade consummation.

In addition, BGC also failed to report block trades to the Exchange within the required time period following execution. On multiple occasions, BGC also improperly combined separately negotiated and executed trades on one ticket and reported the trades to the Exchange as a single block trade.

A Panel of the COMEX Business Conduct Committee further found that BGC did not sufficiently advise and train such staff as to relevant Exchange rules and Market Regulation Advisory Notices (“MRANs”) in order to ensure compliance with Exchange block trade reporting requirements.

As a result of the foregoing, BGC violated Exchange Rules 526.F (“Block Trades”), 536.E. (“Negotiated Trades”) and 432.W. (“General Offenses – Failure to Supervise”).

In accordance with the settlement offer, the Panel ordered BGC to pay a fine to the Exchange in the amount of $60,000.