Mellon Investments Corporation
CBOT RULE VIOLATIONS: Rule 562 (“Position Limit Violations”) (in part)
Any positions, including positions established intraday, 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 Mellon Investments Corporation (“Mellon”) neither admitted nor denied the rule violation upon which the penalty is based, on June 15, 2020, a Panel of the CBOT Business Conduct Committee (“Panel”) found that from September 11, 2019, through September 13, 2019, two reportable accounts controlled by Mellon held a combined net futures equivalent long position of 8,015 DEC19 Soybean Oil futures, 15 (0.19%) contracts over the single month position limit and held that position on an end-of-day and intraday basis. On the morning of Monday, September 16, 2019, Mellon reduced the overage to bring the accounts’ position into compliance, resulting in a profit to the accounts of $9,720.
The Panel concluded that Mellon thereby violated CBOT Rule 562.
In accordance with the settlement offer, the Panel ordered Mellon to pay a fine in the amount of $25,000 and ordered disgorgement of the profit in the amount of $9,720.