International derivatives marketplace CME Group today posted a notice of disciplinary action against SG Americas Securities LLC.
Pursuant to an offer of settlement in which SG Americas Securities, LLC (“SGAS”) neither admitted nor denied the rule violations upon which the penalty is based, a Panel of the Chicago Mercantile Exchange (“CME”) Business Conduct Committee found that on multiple occasions from December 26, 2023, through January 2, 2024, SGAS executed Exchange of Futures for Physical (“EFP”) trades in March 2024 Australian Dollar, Canadian Dollar, and Japanese Yen futures markets.
None of the trades consisted of a bona fide transfer of ownership of the underlying asset between
the parties. The Panel further found that SGAS executed these transactions for the purpose of transferring futures positions between two accounts with common beneficial ownership.
The Panel concluded that SGAS thereby…
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