StoneX Fined $1Mn by CFTC for Disclosure Lapses

The U.S. Commodity Futures Trading Commission (CFTC) yesterday (September 20) issued an order simultaneously filing and settling charges against StoneX Markets LLC (StoneX), a registered swap dealer, for failing to disclose thousands of Pre-Trade Mid-Market Marks (PTMMMs), violating CFTC's Business Conduct Standards applicable to swap dealers.

The order requires StoneX to pay a $650,000 civil monetary penalty, complete remedial measures, and submit compliance reports to the Division of Enforcement of CFTC.

More specifically, for a large number of transactions between 2016 and 2022, StoneX failed to implement appropriate procedures to ensure the accuracy of its PTMMMs, failed to adequately train and supervise its associated personnel regarding PTMMM disclosure requirements, and failed to promptly provide counterparties with PTMMMs. StoneX admitted to the findings.

At the beginning of this year, StoneX was also fined $1 million by the National Futures Association (NFA)​ for violating multiple compliance rules.