On Wednesday, ICE Futures US revealed it has fined Novum Energy Trading Corp $35,000 for violating exchange rules related to trade practices and block trading requirements.
The firm said the fine was issued following an investigation into trading activity between February and June 2023.
According to a disciplinary notice published by the exchange, one of Novum’s traders executed simultaneous and partially offsetting block trades in the Fuel Oil Outright – USGC HSFO (Platts) Future contract.
They explained that these trades, such as buying five lots while selling six lots, were intended to accommodate block trades below the required minimum quantity threshold (MQR).
The ICE Futures US Business Conduct Committee (BCC) found that the activity may have violated Exchange Rules 4.02(c) and 4.07(b).
Rule 4.02(c) prohibits wash sales, prearranged trades, and fictitious transactions, while Rule 4.07(b) requires block trades to meet minimum size thresholds set by the exchange.
Novum neither admitted nor denied the violations but agreed to the monetary penalty as part of a settlement. The exchange noted that no customer harm resulted from the activity.