CFTC fines ADMIS for failing supervision of handling commodity interest accounts
15 July 2019 Chicago
Image: Shutterstock
The Commodity Futures Trading Commission (CFTC) has issued an order filing and settling charges against ADM Investor Services (ADMIS), a registered futures commission located in Chicago, Illinois.
The order requires ADMIS to pay a civil penalty of $250,000 and cease and desist from any further violations of the Commodity Exchange Act or CFTC regulations.
The order finds that from at least 1 December 2014 to 24 September 2017, ADMIS failed to supervise the handling of commodity interest accounts carried by ADMIS and introduced by an ADMIS-guaranteed introducing broker (GIB).
The order finds that ADMIS failed to adequately supervise its employees and agents to ensure they executed bunched orders that properly segregated the GIB’s proprietary trades from its customer trades.
ADMIS also failed to execute bunched orders that properly segregated trades from discretionary and non-discretionary GIB customer accounts.
In addition, the ADMIS failed to executed orders for non-discretionary GIB customers only when the GIB had obtained specific customer authorisation for the transaction.
The order requires ADMIS to pay a civil penalty of $250,000 and cease and desist from any further violations of the Commodity Exchange Act or CFTC regulations.
The order finds that from at least 1 December 2014 to 24 September 2017, ADMIS failed to supervise the handling of commodity interest accounts carried by ADMIS and introduced by an ADMIS-guaranteed introducing broker (GIB).
The order finds that ADMIS failed to adequately supervise its employees and agents to ensure they executed bunched orders that properly segregated the GIB’s proprietary trades from its customer trades.
ADMIS also failed to execute bunched orders that properly segregated trades from discretionary and non-discretionary GIB customer accounts.
In addition, the ADMIS failed to executed orders for non-discretionary GIB customers only when the GIB had obtained specific customer authorisation for the transaction.
← Previous clearing and settlement article
BNP Paribas selected by Arca Fondi SGR for clearing services
BNP Paribas selected by Arca Fondi SGR for clearing services
NO FEE, NO RISK
100% ON RETURNS If you invest in only one asset servicing news source this year, make sure it is your free subscription to Asset Servicing Times
100% ON RETURNS If you invest in only one asset servicing news source this year, make sure it is your free subscription to Asset Servicing Times
.jpg)