• NOTICE OF DISCIPLINARY ACTION

      • #
      • CBOT18-0890-BC
      • Effective Date
      • 20 September 2019
    • FILE NO.:

      CBOT 18-0890-BC

      MEMBER:

      Wherrett Trading 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 Wherrett Trading (“Wherrett”) neither admitted nor denied the rule violations or factual findings upon which the penalty is based, on September 18, 2019, a Panel of the Chicago Board of Trade (“CBOT”) Business Conduct Committee (“Panel”) found that on trade date February 27, 2018, Wherrett held an end of day futures equivalent long position of 698 March 2018 Corn futures contracts, which was 98 contracts (16.33%) over the spot month position limit in effect. This was Wherrett’s second position limit violation in three months. Wherrett liquidated the position at the 7:00 PM open of the following trade date, the next available time to do so. The Panel concluded that Wherrett thereby violated CBOT Rule 562.

      PENALTY:

      In accordance with the settlement offer, the Panel ordered Wherrett to pay a total fine of $30,000.

      EFFECTIVE DATE:

      September 20, 2019