CME Group Fines Citigroup Global Markets $150,000 for CBOT Rule Violation

CME Group has issued a disciplinary notice against Citigroup Global Markets Inc. (CGMI) for violating Chicago Board of Trade (CBOT) rules related to customer agreement terms.

According to the exchange, a CBOT Business Conduct Committee Panel accepted a settlement in which CGMI neither admitted nor denied the rule violation. The Panel found that CGMI had contractually limited its own discretion over when and under what conditions client positions could be liquidated for a defined period.

The Panel determined that this restriction conflicted with CBOT Rule 930.K.

CME Group stated that CGMI has since revised the relevant customer agreements, and the updated language is now compliant with exchange rules.

Under the settlement terms, the Panel imposed a $150,000 fine on CGMI.