Company: EUO
Filing Date: 2025-03-28
Form Type: 424B3
Source: 0001193125-25-065648
Chunk: 182

Company: ProShares Trust II
Filing Date: 2025-03-28
Form: 424B3
Chunk 182
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 nor denied the rule violations or factual findings upon which the penalty is based, on January 28, 2020, a Panel of the Commodity Exchange (“the Exchange”) Business Conduct Committee (“Panel”) found that beginning on or about March 12, 2012, ADMIS learned that one of its brokerage firm clients (“client”) automatically offset omnibus account positions in futures contracts using the FIFO method. This information was not escalated to the appropriate person at ADMIS and, beginning on February 15, 2017, and continuing at least until May 21, 2018, one or more ADMIS employees was aware a client was misreporting its open positions, and provided incorrect guidance to, and otherwise assisted, the client regarding reporting inaccurate position data in Copper futures contracts to the Exchange. As a result, inaccurate open interest data was published to the market. The Panel therefore found that ADMIS failed to require the client to provide accurate and timely owner and control information and continued to report inaccurate information regarding the ownership and control of the positions through May 2018, in violation of Exchange Rules 432.Q., 432.X., and 561.C. Beginning in September 2017, the Exchange began the first of multiple investigations into the same client’s customer trading activity. The client’s responses to the Exchange’s document requests were untimely and inaccurate. On January 25, 2018, the Exchange requested assistance from ADMIS to provide the client’s accurate audit trail data. On multiple occasions continuing through May 2018, ADMIS provided the Exchange with inaccurate audit trail data that was provided by the client. The Panel found that ADMIS thereby

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violated Exchange Rule 536.B.2. Finally, the Panel found that ADMIS failed to take effective measures to intervene, correct, and ensure the accuracy of: (1) its client’s purchase and sales data reporting, beginning on March 12, 2012, and continuing through May 2018; and (2) ADMIS’s own responses to the Exchange’s investigative requests beginning in January 2018 and continuing through May 2018. In addition, ADMIS failed to properly supervise employees regarding escalation procedures when an ADMIS client was discovered to have violated Exchange rules. The Panel therefore found that ADMIS violated Exchange Rule 432.W. In accordance with the settlement offer, the Panel ordered ADMIS to pay a fine of $650,000. Effective Date: January 30, 2020. ICE Case #: 2019