The Chicago Mercantile Exchange (CME) has imposed a monetary penalty of $500,000 on Grand International Futures Company Limited as a disciplinary action for violating the trading venue’s rules around customer identification.

CME Fines Grand International Futures

According to the official announcement, the settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term offer came after a panel of the Chicago-based derivatives exchange giant’s business conduct committee found multiple violations in the practices of Grand in offering trading activities.

Unique identification of every customer of a clearing Clearing Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Read this Term member using CME’s platforms is a necessity. “Each individual must use a unique operator ID to access Globex. In no event may a person enter an order or permit the entry of an order by an individual using an operator ID other than the individual’s own unique operator ID,” the CME stated.

However, Grand, from 3 February 2020 to 17 February 2021, failed to have appropriate policies and procedures in place for the creation, maintenance, and monitoring of operator identifications for its customers. The company permitted its customers to create their operational identifications using a third-party software provider, which could not identify the customer that used the operator identifications. Further, the system allowed multiple customers to enter orders using the same operator identification.

“The Panel found that by allowing its customers to repeatedly create operator IDs via the third-party software vendor, Grand removed its ability to identify and track those customers who sent messages to the Exchange under these operator IDs,” the CME added.

Check out the recent London Summit session on "Online Trading - A Futurist Look."

CME - A Major US Derivatives Trading Venue

CME is one of the two largest derivatives exchange venues in the United States. Its revenue for the third quarter of the ongoing year increased by 11 percent to come in at $1.11 billion reported, along with a net income of $719 million compared to $574 million a year earlier. The quarterly figures were pushed higher due to a 26 percent jump in trading activities on the platform.

Meanwhile, CME is focused on increasing its product lineups. Last September, It introduced retail event contracts, which are binary options-styled trading instruments.