• NOTICE OF DISCIPLINARY ACTION

      • #
      • CBOT 20-1330-BC
      • Effective Date
      • 08 February 2021
    • MEMBER:                           

      Voloridge Investment Management LLC

      CBOT VIOLATION:                       

      562. Position Limit Violations (in 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 Voloridge Investment Management LLC (“Voloridge”) neither admitted nor denied the rule violation upon which the penalty is based, on February 4, 2021, a Panel of the CBOT Business Conduct Committee (“Panel”) found that at the close of business on May 26, 2020, Voloridge held a total futures equivalent short position of 6,937 Soybean Meal contracts, which was 437 contracts (6.72%) over the all month position limit of 6,500. On May 27, 2020, Voloridge increased its position and at the end of the day held a total futures equivalent short position of 7,765 Soybean Meal contracts, which was 1,265 contracts (19.46%) over the all month position limit of 6,500 contracts. After realizing it was over the limit on May 28, 2020, Voloridge liquidated its overage to bring its position into compliance, resulting in a profit of $72,318. The Panel found that Voloridge thereby violated CBOT Rule 562.

      PENALTY:                           

      In accordance with the settlement offer, the Panel ordered Voloridge to pay a fine in the amount of $25,000 and disgorgement in the amount of $72,318.

      EFFECTIVE DATE:                                 

      February 8, 2021