NFA Orders StoneX Markets LLC to Pay $1 Million Fine for Compliance Violations

The National Futures Association (NFA), the self-regulatory organisation for the U.S. derivatives industry, has ordered ​StoneX Markets LLC (Stone), a registered swap dealer and NFA Member headquartered in Chicago, Illinois, to pay a $1,000,000 fine for multiple violations of compliance rules.

The Decision, issued by NFA's Business Conduct Committee (BCC), is based on a Complaint issued by the BCC and a settlement offer submitted by Stone.

According to the complaint, BCC found that Stone

• violated NFA Compliance Rule 2-4 by failing to provide timely and complete disclosure to its counterparties that the firm was not calculating initial margin (IM) according to its customary procedures;

• violated NFA Compliance Rule 2-49(a) by failing to maintain and enforce an adequate risk management program with respect to the firm's value-at-risk calculation and daily IM determination, and by failing to retain required records and provide pre-trade mid-market marks to counterparties;

• violated NFA Compliance Rules 2-9(d) and 2-49(a) by failing to supervise the firm's operations.

In the settlement offer, the firm neither admitted nor denied the allegations in the Complaint.