Credit Agricole Corporate and Investment Bank
CBOT RULE VIOLATIONS:
Rule 562. (Position Limits Violations) (in part)
Any positions in excess of those permitted under the rules of the Exchange shall be deemed position limit violations.
Rule 11102.E. (Soybean Futures – Position Limits)(in part)
In accordance with Rule 559., Position Limits and Exemptions, no person shall own or control positions in excess of:
1. 600 contracts net long or net short in the spot month.
2. 6,500 futures-equivalent contracts net long or net short in any single contract month excluding the spot month. Additional futures contracts may be held outside of the spot month as part of futures/futures spreads within a crop year provided that the total of such positions, when combined with outright positions, does not exceed the all months combined limit.
3. 10,000 futures-equivalent contracts net long or net short in all months combined.
Pursuant to an offer of settlement in which Credit Agricole Corporate and Investment Bank-London Branch (“Credit Agricole”) neither admitted nor denied the rule violations upon which the penalty is based, a Panel of the CBOT Business Conduct Committee found that at the close of trading on February 4, 2011, Credit Agricole had an end of day position of 11,712 net futures equivalent contracts short across all contract months in Soybean futures and options, which exceeded the all months combined speculative position limit of 10,000 futures-equivalent contracts by 1,712 contracts or 17%. The following business day, February 7, 2011, Credit Agricole liquidated the violative portion of its position in an orderly manner. The Panel therein found that in holding a Soybean futures position that exceeded the all months speculative position limit, Credit Agricole violated CBOT Rules 562 and 11102.E.
In accordance with the settlement offer and in consideration of Credit Agricole’s disciplinary history and remedial efforts to cure the violation, the Panel ordered Credit Agricole to pay a fine of $20,000 and disgorgement of $119,840.
August 9, 2012
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