• NOTICE OF DISCIPLINARY ACTION

      • #
      • 13-CH-1301
      • Effective Date
      • 29 August 2013
    • CHICAGO BOARD OF TRADE

      NOTICE OF DISCIPLINARY ACTION

      FILE NO.: 13-CH-1301

      MEMBER FIRM: Cunningham Commodities, LLC

      CBOT RULES:

      970. FINANCIAL REQUIREMENTS

      A. Subject to exemptions granted by Exchange staff, all clearing members, including non-FCMs, must comply with the requirements set forth in CFTC Regulations 1.10, 1.12, 1.17 and 1.18. This includes, but is not limited to, the following:

      4. Completely and accurately computing and recording the balances in the net capital computation including capital requirements.                               

      980. REQUIRED RECORDS AND REPORTS

      B. Each clearing member shall maintain an adequate accounting system, internal accounting controls, and procedures for safeguarding customer and firm assets. This includes, but is not limited to, the following:

      3. Prevention of a material inadequacy as defined in CFTC Regulation 1.16(d)(2).                                               

      FINDINGS: Pursuant to an offer of settlement in which Cunningham Commodities, LLC neither admitted nor denied the rule violation upon which the penalty is based, on August 28, 2013, the Clearing House Risk Committee found that Cunningham Commodities, LLC violated CBOT Rules 970.A.4. and 980.B.3.

      PENALTY:  In accordance with the settlement offer, the Committee fined Cunningham Commodities, LLC $50,000.

      EFFECTIVE DATE: August 29, 2013