International derivatives marketplace CME Group has published a notice of disciplinary action against Wells Fargo Securities, LLC (WFS).
Pursuant to an offer of settlement in which WFS consented to entry of findings by the Clearing House Risk Committee (CHRC), but neither admitted nor denied the findings or the rule violations upon which the penalty is based, the CHRC found that WFS:
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contractually agreed for margin calls to be met in a timeframe that was longer than one business day; and
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contractually agreed to a period of time during which the firm’s full discretion to determine when and under what circumstances positions could be liquidated was restricted.
The CHRC thereby concluded that WFS violated CME Rules 930.E.1., 930.F., and 930.K.1. The CHRC also found that…
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