• NOTICE OF DISCIPLINARY ACTION

      • #
      • CBOT-18-0977
      • Effective Date
      • 19 July 2019
    • FILE NO.:

      CBOT 18-0977-BC

      NON-MEMBER:

      David Thompson

      CBOT RULE VIOLATION:

      Rule 562 (“Position Limit Violations”) (in relevant part)

      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 David Thompson (“Thompson”) neither admitted nor denied the rule violation or factual findings upon which the penalty is based, on July 17, 2019, a Panel of the Chicago Board of Trade (“CBOT”) Business Conduct Committee (“Panel”) found that at the close of trading on trade date June 26, 2018, Thompson held an aggregate net futures equivalent long position of 9,768 September 2018 Soybean Oil, October 2018 Soybean Oil, and December 2018 Soybean Oil contracts, which exceeded the single and all-months position limit by 1,768 contracts, or 22.10%. On the following trade date, June 27, 2018, Thompson increased his September 2018 Soybean Oil, October 2018 Soybean Oil, and December 2018 Soybean Oil futures position to 10,268 contracts, or 28.35% over the single and all-months position limit. After realizing he was over the limit, Thompson liquidated his overage to bring his positions into compliance and did not profit from doing so.

      The Panel concluded that Thompson thereby violated CBOT Rule 562.

      PENALTY:

      In accordance with the settlement offer, the Panel ordered Thompson to pay a fine of $23,000.

      EFFECTIVE DATE:

      July 19, 2019