• NOTICE OF DISCIPLINARY ACTION

      • #
      • CBOT-16-0578-BC
      • Effective Date
      • 22 June 2017
    • FILE NO.:

      CBOT 16-0578-BC

      MEMBER:

      Nidera US LLC

      CBOT RULE VIOLATION:

      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, including positions established intraday.

      FINDINGS:

      Pursuant to an offer of settlement in which Nidera US LLC (“Nidera”) neither admitted nor denied the rule violation upon which the penalty is based, on June 20, 2017, a Panel of the CBOT Business Conduct Committee (“Panel”) found that at the close of business on November 29, 2016, Nidera held a long futures position of 1,702 December 2016 Corn futures contracts, which was 1,102 contracts (184%) in excess of the spot month position limit in effect. On November 30, 2016, Nidera liquidated its overage to bring its position into compliance, and did not profit from doing so. The Panel concluded that Nidera thereby violated CBOT Rule 562.

      PENALTY:

      In accordance with the settlement offer, the Panel ordered Nidera to pay a fine of $40,000.

      EFFECTIVE DATE:

      June 22, 2017