ICE Futures U.S.
18 October 2023
Disciplinary Notice
Case No. 2022-017: Settlement of Charges Against Mercon B.V.
Exchange Rule
4.06(b)(iv) - Exchange for Related Position
The accounts involved in the execution of an EFRP Transaction must be (A) independently controlled with different beneficial ownership; or (B) independently controlled accounts of separate legal entities with the same beneficial ownership; or (C) independently controlled accounts within the same legal entity, provided that the account controllers operate in separate business units.
Summary
On October 18, 2023, a subcommittee of the Exchange's Business Conduct Committee determined that from January through June of 2021, Mercon B.V. ("MBV") may have violated Exchange Rule 4.06(b)(iv) by executing multiple Exchange for Physical transactions in different Coffee "C" Futures contracts opposite accounts with common beneficial ownership that were not independently controlled.
Product
Coffee "C" Futures
Customer Harm
No
Penalty
In accordance with the terms of settlement, in which MBV neither admitted nor denied the alleged rule violations, MBV agreed to pay a monetary penalty of $10,000.
Effective Date
October 18, 2023
Linked To
2022-017 - Ciclon Trading Corporation
2022-017 - Mercon Coffee Corporation
For more information: | |
Jason Fusco | Frances M. Mendieta |
jason.fusco@ice.com -or- | frances.mendieta@ice.com |
(212) 748-4021 | (312) 836-6748 |
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ICE - Intercontinental Exchange Inc. published this content on 18 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 October 2023 20:24:05 UTC.