ICE Futures US Imposes Summary Access Denial Notice

In an enforcement related announcement (click here) from ICE Futures US this week, the exchange affirmed an earlier (and rare) enforcement decision of Summary Access Denial (click here). The initial decision was announced in late May and involves Excelia Investments Limited and its owner, Anthony Scigliano.

The Exchange’s Chief Regulatory Officer invoked a summary action for alleged prearranged trading and other unspecified activities that he/she believed could be immediately detrimental to the exchange. The power to summarily deny access to trader is enabled by Rule 21.02(f) (Market Regulation Staff — Powers and Duties). The rule permits the Chief Regulatory Officer or his/her designee to use this power in good faith where he or she determines that there are substantial reasons to believe that immediate action is necessary to protect the best interests of the exchange.

Following the May decision, Excelia requested an expedited hearing to review the case which took place on 21 June 2024. The subcommittee affirmed the summary action taken by the Chief Regulatory Officer but reduced the duration of the suspension from 180 days to 120 days to conform with the maximum period allowed under Exchange Rule 21.03(h)(iii).

 RegTrail Insights

It is not particularly helpful that limited details are provided regarding the behaviour(s) that led up to the original denial of access decision. Such suspensions could be catastrophic for trading entities and as such, a clear understanding of the types of behaviours that could trigger such a substantive decision would be helpful. No detail however is provided by the exchange.