BGC Partners has paid a $90,000 fine to comply with an infringement notice issued by the Markets Disciplinary Panel, ASIC has said.
The Markets Disciplinary Panel (MDP) found that BGC Partners had on three occasions breached regulations regarding pre-negotiated business orders on the ASX 24 futures market, ASIC said.
“In circumstances where a market participant has written authority from a client to engage in pre-negotiated business on behalf of the client, the participant is permitted to withhold the implementation of instructions from the client in order to solicit instructions from other clients,” the regulator said.
“Where the participant seeks to execute pre-negotiated business on the market, the participant must make an enquiry through the message facility of the market, wait until 30 seconds has elapsed and then enter the matching orders that reflect the pre-negotiated business for execution on the market.”
According to ASIC’s statement, the MDP found three instances where BGC Partners had failed to to make the required enquiry through the message facility, twice in March regarding electricity futures, and once in July over bonds futures.
“The MDP also found that, in relation to those pre-negotiated business transactions, BGC did not have written authorisations to transact pre-negotiated business with some of the clients,” the regulator said.
More to come:
The corporate regulator has told the Hayne royal commission that it is at a loss over how to successfully prevent misconduct in financial se...
APRA has announced the terms of reference for the upcoming review that will examine the regulator’s enforcement strategy. ...
APRA has proposed changes to the application of the capital adequacy framework for authorised deposit-taking institutions to support orderly...