ICE Futures U.S. has issued a disciplinary notice to A.E. Bruggemann & Co., following findings from its Business Conduct Committee. The subcommittee’s investigation revealed that between February and June 2023, there were potential violations of specific trading rules concerning block trades in the Fuel Oil Outright – USGC HSFO (Platts) Future contract.
The allegations include conducting simultaneous and partially offsetting block trades, which involved transactions like buying five lots while selling six. These actions were reportedly executed to meet quantities that fell below the minimum quantity requirement (MQR). Additionally, it was determined that the company may not have adhered to the private negotiation requirements necessary for such trades, nor did it adequately supervise the trading activities of its employees.
As part of a settlement agreement, A.E. Bruggemann did not admit to or deny the alleged violations. However, the company has agreed to pay a monetary penalty totaling $45,000 for the matters at hand. The ruling highlights the importance of compliance with trading rules and regulations within the exchange’s operational framework.