• NOTICE OF DISCIPLINARY ACTION

      • #
      • CBOT-16-0576-BC
      • Effective Date
      • 20 July 2017
    • FILE NO.:

      CBOT 16-0576-BC

      MEMBER:

      INTL FCSTONE MARKETS, LLC

      CBOT RULE VIOLATION:

      Rule 562. Position Limit Violations

      Any positions in excess of those permitted under the rules of the Exchange shall be deemed position limit violations.

      FINDINGS:

      Pursuant to an offer of settlement in which INTL FCStone Markets, LLC (“FCStone”) neither admitted nor denied the rule violation upon which the penalty is based, on July 18, 2017, a Panel of the Chicago Board of Trade (“CBOT”) Business Conduct Committee (“BCC” or “Panel”) found that at the close of business on November 29, 2016, FCStone held an end of day futures equivalent long position of 686 December 2016 Corn futures contracts, which exceeded the spot month speculative position limit of 600 contracts by 86 contracts, or 14.33%. Prior to realizing its overage, during the night session for trade date November 30, 2016, FCStone sold 30 December 2016 – March 2017 Corn futures calendar spreads. The following morning, FCStone purchased 40 December 2016 Corn futures, thereby reaching a long position of 696 December 2016 Corn futures contracts. This position exceeded the spot month speculative position limit by 96 contracts, or 16%. Upon realizing the overage, FCStone liquidated, resulting in profits of $9,025. The Panel thus concluded that FCStone thereby violated CBOT Rule 562.

      PENALTY:

      In accordance with the settlement offer, the Panel ordered FCStone to pay a fine of $20,000 and disgorge profits of $9,025.

      EFFECTIVE DATE:

      July 20, 2017