Consolidated Trading Futures LLC
CBOT RULE VIOLATIONS:
Rule 562 (“Position Limit Violations”) (in part)
Any positions in excess of those permitted under the rules of the Exchange shall be deemed position limit violations.
Pursuant to an offer of settlement in which Consolidated Trading Futures LLC (“Consolidated”) neither admitted nor denied the rule violation upon which the penalty is based, on March 28, 2017, a Panel of the CBOT Business Conduct Committee (“Panel”) found that at the close of business on August 30, 2016, Consolidated held a futures equivalent long position of 1,467 September 2016 Corn futures contracts, which was 867 contracts (144.5%) over the spot month position limit in effect. On August 31, 2016, Consolidated liquidated its overage to bring its position into compliance, and did not profit from doing so. The Panel concluded that Consolidated thereby violated CBOT Rule 562.
In accordance with the settlement offer, the Panel ordered Consolidated to pay a fine of $40,000.
March 30, 2017
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