Gain Global Markets Bermuda Ltd., a wholly owned subsidiary of StoneX Group, has been fined $100,000 by the New York Mercantile Exchange (NYMEX), it was revealed this week.
StoneX Subsidiary Gain Global Markets Bermuda Fined by CME Group
The fine is for violations of block trade regulations, according to the disciplinary notice published by CME Group. In addition to the fine, Gain Global has been ordered to disgorge $449,910 in profits.
The penalties stem from findings by NYMEX’s Business Conduct Committee, which concluded that the firm engaged in prohibited pre-hedging activity on multiple occasions between April and August 2022, as well as in April 2024.
The violations are said to have involved trades in Crude Oil, NY Harbor ULSD, RBOB, and Platinum futures contracts.
The panel reportedly found that a StoneX affiliate directed counterparties to engage in block trades with Gain Global but failed to provide the necessary disclosures about its principal role.
CME Group claims that in several cases, Gain Global executed hedging transactions on CME’s Globex platform before finalising block trades with those counterparties, thereby profiting from subsequent pricing.
Under CME rules, such anticipatory hedging is prohibited unless the trading party clearly discloses its principal role beforehand to avoid creating an implied agency relationship.
The settlement was reached without Gain Global admitting or denying the rule violations.
