An international derivatives marketplace has imposed a fine on Infini Capital Management Ltd due to alleged violations of trading rules. This action follows an offer of settlement, which resulted in the management neither admitting nor denying the findings related to the infraction.
The violations at the Chicago Board of Trade (CBOT) were identified when it was discovered that a trader from Infini Capital executed both buy and sell orders for December 2024 10-Year U.S. Treasury Note futures and November 2023 10-Year U.S. Treasury Note Weekly options. These orders were positioned to match one another for accounts that shared common beneficial ownership. The intent behind these opposing orders was to facilitate a transfer of positions among accounts belonging to Infini Capital.
The oversight committee at CBOT found that Infini Capital did not provide thorough supervision over its trader, failing to ensure adherence to regulations concerning wash trade activities, which are prohibited under CBOT Rule 432.W.
As part of the resolution, the committee mandated that Infini Capital pay a penalty of $45,000 as a result of this case and related matters on the CME and COMEX platforms. The decision reflects the commitment to regulatory compliance within the trading environment, emphasizing the importance of diligent supervision of trading activities.