NOTICE OF SUMMARY ACTION

FILE NO.:

CBOT RSRH-19-5648

MEMBER FIRM:

Ardent Mills, LLC

RULE VIOLATIONS:

703.A Conditions for Approval and 512 Reporting Infractions

703.A Conditions for Approval

(5) The operator of the facility shall furnish accurate information to the Exchange regarding all product received and delivered by the facility on a daily basis and/or that product remaining in store at the close of each week, as required by the Exchange.

512.A. General

All data, records and other information required by the rules to be reported to the Exchange or the Clearing House, as applicable, must be submitted in an accurate, complete and timely manner.

FINDINGS:

On November 5, 2019 Ardent Mills, LLC (Wichita) submitted 4,120,000 bushels in CCC stocks when it should have been reported as deliverable Hard Red Winter Wheat on the Weekly Stocks of Grain report.  The firm then informed the Registrar’s Office that they had been reporting all 4,120,000 of their wheat stocks at Wichita as Hard Red Winter Wheat when only 3,075,556 bushels of that wheat was Hard Red Winter Wheat.  This caused their Weekly Stocks of Grain stocks to be overstated.  As a follow up to this event, Ardent Mills, LLC has implemented new procedures for reporting that includes a two-person system for extra caution.

PENALTY:

On July 2, 2020, Ardent Mills, LLC, pursuant to Rule 512 (“Reporting Infractions”), was issued a $7,500 fine by the 512 Committee for their violations of Rule 703.A.5.

EFFECTIVE DATE:

July 29, 2020