ICE Futures US has fined ICAP Energy LLC $50,000 following an investigation into improperly brokered block trades and multiple recordkeeping failures. The settlement, dated June 11, 2025, follows a formal review by the Exchange’s Business Conduct Committee (BCC).
The BCC found that in September 2023, an employee at ICAP Energy brokered accommodation trades to improperly correct a previously executed block trade. The activity potentially violated Exchange Rule 4.02(c), which prohibits trades that lack economic substance or mislead the market.
Further, from March to April 2024, ICAP allegedly:
- Misreported execution times on block trades (Rule 4.07(c))
- Failed to meet recordkeeping requirements (Rule 6.08(a)(ii))
- Did not adequately supervise block trading activity (Rule 4.01(a))
While ICAP neither admitted nor denied the violations, it agreed to the $50,000 penalty as part of the settlement.
Block Trade Compliance Under the Microscope
For firms active in block trading or energy derivatives, this case underscores the critical importance of:
- Accurate execution reporting
- Robust supervision of employees
- Full compliance with recordkeeping standards
Even established intermediaries are under increasing regulatory scrutiny — and compliance lapses, no matter how procedural, can lead to significant reputational and financial damage.
What Happened
