Legend Arb Trading LTD
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.
Pursuant to an offer of settlement in which Legend Arb Trading LTD (“Legend”) neither admitted nor denied the rule violation or factual findings upon which the penalty is based, on April 20, 2020, a Panel of the Chicago Board of Trade (“CBOT”) Business Conduct Committee (“Panel”) found that at the close of business on November 27, 2019, Legend held a position of net futures equivalent long in December 2019 Soybean Oil futures which exceeded the spot month position limit of 540 contracts by 144 contracts, or 26.67%. Legend liquidated its overage on November 29, 2019, to bring its positions into compliance and did not profit from doing so.
The Panel concluded that Legend thereby violated CBOT Rule 562.
In accordance with the settlement offer, the Panel ordered Legend to pay a fine of $25,000.
April 22, 2020