• NOTICE OF DISCIPLINARY ACTION

      • #
      • CBOT 19-1192-BC-2
      • Effective Date
      • 17 June 2020
    • MEMBER:

      Goldman Sachs & Co. LLC

      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.

      A customer who exceeds the position limits as a result of maintaining positions at more than one clearing member shall be deemed to have waived confidentiality regarding his positions and the identity of the clearing members at which they are maintained. A clearing member carrying such positions shall not be in violation of this rule if, upon notification by the Market Regulation Department, it liquidates its pro-rata share of the position in excess of the limits or otherwise ensures the customer is in compliance with the limits within a reasonable period of time.

      FINDINGS:

      Pursuant to an offer of settlement in which Goldman Sachs & Co. LLC (“Goldman”) 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, a customer of Goldman carried positions at more than one clearing member firm. Two reportable accounts controlled by the customer 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. Goldman, a clearing member, received notification of the overage from the Market Regulation Department on September 12, 2019 (and again on September 13 and 16). Despite this notice, Goldman failed to liquidate its pro-rata share of the customer’s position in excess of limits or otherwise ensure that its customer was in compliance with the limits within a reasonable period of time.

      The Panel concluded that Goldman thereby violated CBOT Rule 562.

      PENALTY:

      In accordance with the settlement offer, the Panel ordered Goldman to pay a fine in the amount of $15,000.