The U.S. Commodity Futures Trading Commission (CFTC) fined StoneX Markets $650,000 for failing to comply with the CFTC's Business Conduct Standards for swap dealers.。

The regulator said: "StoneX failed to implement procedures to ensure that its pre-trade mid-market prices (PTMMMs) are consistent with its internal pricing methodology, failed to adequately train and monitor relevant personnel in relation to this requirement, and failed to provide PTMMMs to counterparties in a timely manner.。

StoneX fined for breaching business conduct standards

StoneX Markets publicly admitted the breaches, which occurred between 2016 and 2022, during which it failed to adequately oversee its PTMMMs disclosure process.。This has resulted in a large number of swaps not meeting PTMMMs disclosure requirements, according to the commodities watchdog。

In addition, StoneX Markets was unable to provide PTMMMs to counterparties in a timely manner, further exacerbating its compliance problems and seriously violating the CFTC's Business Conduct Standards, which are designed to maintain transparency and fairness in the swap market.。

In January, StoneX Markets was fined $1 million by the National Futures Association (NFA) for a series of violations.。The NFA, the U.S. regulator that regulates derivatives activities, filed a complaint against the company, accusing it of violations on various fronts.。While StoneX Markets opted for a settlement, it neither admitted nor denied the allegations.。

Meanwhile, StoneX Group, the parent company of StoneX Markets, reported a significant 38% decline in revenue from its FX and Contracts for Difference (CFDs) division in the second quarter of fiscal 2023, mainly due to reduced demand for FX / CFDs trading on platforms controlled by StoneX.。

Specifically, the average daily trading volume (ADV) of StoneX's forex / CFD instruments fell by 10% in three months, from $14,937 to $13,490.。In addition, the exchange rate per million dollars (RPM) of foreign exchange / CFDs fell by 31 per cent from $104 to $72.。

StoneX establishes partnership to expand fixed income services

Meanwhile, StoneX Financial Inc, a subsidiary of the StoneX Group.Established a partnership with Coinbase, one of the leading companies in the cryptocurrency industry。The partnership aims to open a range of Coinbase Derivatives Exchange (CDE) contracts to StoneX's financial clients, including Bitcoin and Ethereum futures.。

In addition, StoneX Financial began a strategic expansion in March, launching a new trading products and debt service sales unit in its U.S. fixed income business.。