(The following is a reformatted version of a press release
issued by CME Group and received via electronic mail. The
release was confirmed by the sender.)
CHICAGO BOARD OF TRADE
NOTICE OF DISCIPLINARY ACTION
FILE NO.: CBOT 11-8572-BC
MEMBER FIRM: HSBC Securities (USA) Inc.
VIOLATIONS: Rule 526 Block Trades (in part)
F. The seller must ensure that each block trade is reported to
the Exchange within five minutes of the time of execution;
except that block trades in interest rate futures and options
executed outside of Regular Trading Hours (7:00 a.m. - 4:00 p.m.
Central Time, Monday - Friday on regular business days) must be
reported within fifteen minutes of the time of execution.
FINDINGS: Pursuant to an offer of settlement in which HSBC
Securities (USA) Inc. (“HSBC”), neither admitted nor denied the
Rule violations upon which the penalty is based, on March 25,
2014, a Panel of the Chicago Board of Trade Business Conduct
Committee (“Panel”) found that on June 3, 2011, HSBC executed a
block trade in the September 2011 Five-Year US Treasury Note
futures contracts, and failed to report the trade to the
Exchange within five minutes. The Panel concluded that HSBC
thereby violated CBOT Rule 526.F.
PENALTY: In accordance with the settlement offer, the Panel
fined HSBC $25,000.
EFFECTIVE DATE: March 27, 2014
20 South Wacker Drive
Chicago, IL 60606 USA
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