Company: EUO
Filing Date: 2025-03-18
Form Type: S-3/A
Source: 0001193125-25-056731
Chunk: 178

Company: ProShares Trust II
Filing Date: 2025-03-18
Form: S-3/A
Chunk 178
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-CH-2202. Pursuant to an offer of settlement in which ADM Investor Services, Inc. neither admitted nor denied the rule violation upon which the penalty is based, on March 17, 2022, the Clearing House Risk Committee found that ADM Investor Services, Inc. violated CBOT Rule 930.F. In accordance with the settlement offer, the Committee imposed a $50,000 fine. Effective Date: March 18, 2022. CBOT Case #: 21-CH-2103. Pursuant to an offer of settlement in which ADM Investor Services, Inc. neither admitted nor denied the rule violation upon which the penalty is based, on June 10, 2021, the Clearing House Risk Committee found that ADM Investor Services, Inc. violated CBOT Rule 971.A.1. In accordance with the settlement offer, the Committee imposed a $50,000 fine. Effective Date: June 11, 2021. CEI Case #: 18-0922-BC. Pursuant to an offer of settlement in which ADM Investor Services, Inc. (“ADMIS”) neither admitted 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, 201