In an Exchange system brokers must ensure market and trading discipline among its staff,. The brokerage must also ensure customers stick to the rules.
And the exchange steps in if and when the broker fails – and disciplines the broker or its staff, to make sure that lessons are learned.
Here is one such instance, where a disciplinary notice has been issued by ICE Futures Markets to a broker.
It says that Jonathan Alexander repeated something that was done to him “unknowingly”. That did not spare him from a $ 85,000 fine and a 9 month suspension from trading. (Read the ICE Futures Disciplinary Notice here.)
Allowing such instances to go unpunished undermines confidence in the market which the Exchange can ill afford.