CME 10-07409-BC and CME 10-07806-BC
ALVIN CECIL FULTS
CME RULE VIOLATIONS:
(Legacy) Rule 443. Position Limit Violations
The Market Regulation Department and the BCC shall have the authority to enforce the position limit rules of the Exchange. For purposes of this rule, any positions in excess of those permitted under the rules of the Exchange shall be deemed position limit violations….
Rule 10102.E. Position Limits (Live Cattle Futures)
No person shall own or control more than:
b. 450 contracts long or short in the expiring contract month as of the close of business on the first business day following the first Friday of the contract month……
Pursuant to an offer of settlement in which Alvin Cecil Fults (“Fults”) neither admitted nor denied the rule violation upon which the penalty is based, on September 21, 2010, a Panel of the CME Business Conduct Committee found that on August 9, 2010, Fults inadvertently carried positions in excess of the spot month speculative position limit in August Cattle Futures by 405 contracts; or 90% above the 450 contract spot month speculative position limit. Further, the CME Business Conduct Committee found that on October 7, 2010, Fults inadvertently exceeded the spot month speculative position limit of 450 contracts in October 2010 Live Cattle futures by five contracts; or approximately 1%.
In accordance with the settlement offer the Panel ordered Fults to pay a fine of $20,000 and disgorgement of $26,439.
September 23, 2011
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