This blog has pointed out the difference between US and European regulatory environments for futures trading. A circular issue today by ICE Futures Europe here points out the differences and similarities very nicely.
The circular cites ABN Amro Clearing Chicago LLC as the fined party but the facts are that ICE Europe "observed numerous instances of suspected disorderly trading by the AACC client firm on the ICE Brent Crude Futures, ICE WTI Crude Futures and the ICE Brent / WTI Crude Spread markets." The fact pattern would normally be called spoofing in the compliance world.
ICE Europe rules require "that, as part of their systems and controls, Members must have an effective compliance function which provides appropriate oversight of trading activity. In respect of DEA Providers, this includes having effective oversight of the trading activity of DEA client firms. "
Note, as DCM has pointed out before, that the rule is directed towards the broker/dealer Member, not the customer. This is the big difference between US and Europe's exchange rules. But also note that the ICE Europe disciplinary notice covers WTI and Brent/WTI spreads - these are US markets. And ABN was providing this service from its US entity. So, just like the US, the European exchanges are reaching out past their borders to impose discipline on entities because they are participating in their exchange.
This does not cite any rules like the US CFTC rules for prior approval or controls on algos to assure there is no disruptive trading prior to implementing the use of the algo.
The fine to ABN was £30,000 (discretionary discount was applied for “early settlement”).
The customer was not let off scot free however. ICE Futures notes “Following receipt of the Exchange’s notice of investigation, ABN ceased to provide the ABN client firm with DEA (Direct Electronic Access)” to the market. In addition, ICE required that ABN cease providing such service to the customer for at least a year.