Intercontinental Exchange : Settlement of Charges Against Mercon Coffee Corporation

ICE Futures U.S.

18 October 2023

Disciplinary Notice

Case No. 2022-017: Settlement of Charges Against Mercon Coffee Corporation

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 Coffee Corporation ("MCC") 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 MCC neither admitted nor denied the alleged rule violations, MCC agreed to pay a monetary penalty of $40,000.

Effective Date

October 18, 2023

Linked To

2022-017 - Ciclon Trading Corporation

2022-017 - Mercon B.V.

For more information:
Jason Fusco	Frances M. Mendieta
[e-mail] -or-	[e-mail]
[phone]	[phone]

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