StoneX Subsidiary, Gain Global Markets Bermuda, Penalized for Trading Misconduct

Gain Global Markets Bermuda Ltd., a wholly owned subsidiary of StoneX Group, has come under regulatory scrutiny following findings by the New York Mercantile Exchange (NYMEX) Business Conduct Committee. The disciplinary action stems from a series of improper trading practices spanning several periods between April 2022 and April 2024.

According to an official notice issued by CME Group, Gain Global engaged in pre-hedging activities across a range of commodities, including Crude Oil, NY Harbor ULSD, RBOB, and Platinum futures. Investigators found that in multiple instances, prior to finalizing block trades with counterparties, Gain Global executed offsetting trades on Globex, potentially positioning itself for favorable outcomes ahead of the actual transactions. Such practices are prohibited under NYMEX Rule 526, which seeks to ensure fair market conduct and prevent conflicts of interest in block trading.

The situation was further complicated by the role of another StoneX subsidiary, which directed counterparties to engage in block trades with Gain Global without fully disclosing its involvement or affiliations. This lack of transparency heightened concerns about the integrity of the trading process.

Without admitting or denying the alleged violations, Gain Global agreed to a settlement that includes a monetary fine of $100,000 and a requirement to disgorge profits amounting to $449,910. The settlement underscores CME Groups continued focus on enforcing fair trading standards, particularly in high-value markets such as energy and precious metals.

The case also highlights the broader risks financial institutions face when internal controls around block trading practices are insufficient. As trading environments grow increasingly complex, ensuring strict adherence to transparency and regulatory obligations remains critical for maintaining trust and stability in global derivatives markets.