ICE Futures Europe proceeded with and settled disciplinary measures against HSBC Bank PLC, ICE says
ICE•Disciplinary measures and settlement
Aug. 14 (Reuters) - Intercontinental Exchange:
- ICE says ICE Futures Europe has proceeded with and settled disciplinary measures against HSBC Bank PLC.
- ICE says on 4 October 2024, it observed significant and sharp price movements in the Jun27 and Sep27 three month Sonia index futures contracts.
- ICE says the movements were caused by HSBC erroneously submitting a significant volume of orders in these contracts due to the incorrect configuration of an algorithm used to submit the orders.
- ICE says it found that HSBC did not have adequate pre-trade controls in place to prevent and mitigate the erroneous algorithmic trading activity.
- ICE says the parties agreed a settlement in which HSBC will pay a financial penalty of £94,500, reduced from £135,000 for early settlement.
