The National Futures Association (NFA), a self-regulatory organization in the derivatives industry in the United States, has imposed a fine of $1 million on StoneX Markets LLC, a registered swap dealer and NFA member, for violating multiple compliance rules.

The punishment decision this time was made by the Business Conduct Committee (BCC) under the NFA based on its indictment and the settlement proposal submitted by StoneXMarkets LLC.

According to BCC's indictment, StoneX Markets LLC:

Violated NFA compliance rules 2-4 and failed to timely and fully disclose to its counterparties the company's failure to calculate initial margin in accordance with its customary procedures;

Violation of NFA compliance rules 2-49 (a), failure to maintain and execute appropriate risk management plans for the company's VaR calculation and daily initial margin determination, and failure to retain required records and provide pre trade intermediate market markers to counterparties;

Violated NFA compliance rules 2-9 (d) and 2-49 (a) and failed to supervise the company's operations.

StoneX Markets LLC did not acknowledge or deny the NFA's allegations.