ICE Fines Hedgepoint for Coffee Options Rule Breach

ICE Futures U.S. has imposed a $50,000 fine on Hedgepoint Schweiz AG following findings by a Business Conduct Committee (BCC) subcommittee that the firm may have engaged in improper trading activity in January 2024.

According to a disciplinary notice posted by the exchange, Hedgepoint was found to have executed several non-bona fide Exchange of Options for Options (EOOs) transactions in Coffee "C" options without the corresponding over-the-counter (OTC) transactions that are required for such trades to be valid under Exchange Rule 4.06(b). The BCC also cited deficiencies in Hedgepoint's internal oversight systems, which were deemed insufficient to ensure compliance with trading rules.

The fine was issued as part of a settlement agreement, under which Hedgepoint neither admitted nor denied the alleged violations. The exchange did not report any customer harm or broader market impact related to the incident.