UBS Securities Pays $37,500 to Settle with Cboe for CFE Rules Violations

The Business Conduct Committee (BCC) of the Cboe Futures Exchange LLC (CFE) has instituted proceedings against UBS Securities LLC. In order to resolve these proceedings, UBS has submitted a Letter of Consent and agreed to pay a fine of $37,500.

According to CFE Rules, Each Trading Privilege Holder shall maintain front-end audit trail information for all electronic orders entered into the CBOE System. Further, each Trading Privilege Holder and Clearing Member shall keep all books and records required to be kept by it pursuant to the Rules of the Exchange for a period of five years from the date on which they are first prepared.

However, as a CFE Trading Privilege Holder and Clearing Member, UBS did not maintain and could not provide to CFE audit trail data for January 23, 2018, one of ten days requested. Further, data for two of the days reviewed, March 1, 2018 and March 14, 2018, did not include all required elements.

UBS understands and acknowledges that the Business Conduct Committee's decision in this matter will become part of its disciplinary record and published; and may be considered in any future Exchange proceeding.

UBS also acknowledges the Committee's decision to accept or reject this Letter of Consent is final, and that it may not seek review thereof in accordance with Exchange Rule.