CAXTON ASSOCIATES LP
CME 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. Additionally, any person making a bid or offer that would, if accepted, cause such a person to exceed the applicable position limits shall be in violation of this rule.
Pursuant to an offer of settlement in which Caxton Associates LP (“Caxton”) neither admitted nor denied the rule violation upon which the penalty is based and after voluntarily submitting itself to the jurisdiction of the Exchange for purposes of resolving this matter, on October 24, 2012, a Panel of the CME Business Conduct Committee found that on, April 11, 2012, while trading in the June 2012 Nikkei Stock Average futures contract, Caxton exceeded the all contract months combined speculative position limit of 5,000 contracts by 49 contracts, or by approximately 1%, when Caxton inadvertently failed to aggregate positions held by separate Caxton portfolio managers. The Panel found that in so doing, Caxton violated CBOT Rule 562.
In accordance with the settlement offer, the Panel ordered Caxton to pay a fine of $15,000 and disgorgement of $30,625.
October 26, 2012
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