CME Group Fines Grand International Futures $500,000 for Violations

US derivatives giant CME Group has fined Grand International Futures Company Limited violated $500,000 for violating CME Rules.

A Panel of the Chicago Mercantile Exchange Business Conduct Committee found that on multiple occasions from February 3, 2020, through February 17, 2021, Grand impeded the Exchange's investigation into trading activity of Grand's customers by:

• ​failing to have appropriate policies and procedures pertaining to the creation, maintenance, and monitoring of operator IDs assigned to its customers;

• ​as a result of Grand permitting its customers to create their own operator IDs via a third-party software vendor, being unable to identify Globex Terminal Operators who used these operator IDs; and

• ​permitting, without remediation, multiple individuals to enter orders in the Australian Dollar, British Pound, Canadian Dollar, Swiss Franc, Mexican Peso, New Zealand Dollar, Japanese Yen, Euro FX, and E-mini S&P 500 contract markets using the same operator Ids.

In addition to CME, Hong Kong's Securities and Futures Commission (SFC) has reprimanded and fined Grand International Futures $8 million​ for failures in complying with anti-money laundering and counter-terrorist financing (AML/CFT) and other regulatory requirements between October 2017 and October 2018.