Company: SVIX
Filing Date: 2025-09-16
Form Type: 424B3
Source: 0001213900-25-087932
Chunk: 166

Company: VS Trust
Filing Date: 2025-09-16
Form: 424B3
Chunk 166
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, on November15, 2023, a Panel of the Chicago Mercantile Exchange (“CME”) Business Conduct Committee (“Panel”) found that from September6, 2022, through September28, 2022, StoneX submitted block trades to the Exchange with inaccurate execution times and failed to report block trades to the Exchange within the required time period following execution in Three -MonthSOFR futures and Eurodollar options on futures markets. Additionally, the Panel found that StoneX failed to diligently supervise, monitor, and sufficiently train its employees as to relevant Exchange rules and Market Regulation Advisory Notices in a manner sufficient to ensure compliance with the same. The Panel thereby concluded that StoneX violated CME Rules 526, 526.F., and 432.W. In accordance with the settlement offer, the Panel ordered StoneX to pay a $70,000 fine. This action became final on November15, 2023 and effective November17, 2023. CME Case 23 -CH-2304 On March16, 2023, pursuant to an offer of settlement in which StoneX neither admitted nor denied the rule violations upon which the penalty is based, the Clearing House Risk Committee found that StoneX violated Customer Gross Margining Technical Overview Requirements and CME Rule 980. In accordance with the settlement offer, the Committee imposed a $100,000.00 fine. 101 ICE Case 2020 -022 On July20, 2022, a subcommittee of the Exchange’s Business Conduct Committee (“BCC”) determined that StoneX and StoneX Markets LLC (“SX Markets”) may have violated Exchange Rule 4.04 in multiple instances between May 2020 and May 2021 by engaging in improper pre -hedging. In each instance, StoneX, acting in a broker/agency capacity, received an order from a customer and then sought to fill the customer order opposite the proprietary trading desk of its affiliate, SX Markets. However, prior to consummating each block trade opposite StoneX’s customer, traders at SX Markets solicited and/or executed a trade to pre -hedgethe risk from the impending block trade that SX Markets would execute opposite StoneX’s customer. StoneX and SX Markets were able to realize profits in the amount of $225,606.80 by engaging in this activity. In addition, the BCC found that StoneX and SX Markets may have separately violated Exchange Rule 4.04 by adopting a risk policy that may have motivated their employees to engage in the improper