NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CBOT 11-8408-BC
 

NON-MEMBER:

Central States Enterprises LLC

CBOT RULE VIOLATIONS:

Rule 559. (“POSITION LIMITS AND EXEMPTIONS”) (In part)
The position limit levels applicable to those contracts with position limits are set forth in the Position Limit, Position Accountability and Reportable Level Table in the Interpretations Section at the end of Chapter 5.

Rule 14102.E. (“WHEAT FUTURES, POSITION LIMITS”)(In part)
In accordance with Rule 559. Position Limits and Exemptions, no person
shall own or control positions in excess of:

1. 600 contracts net long or net short in the spot month…

FINDINGS:

Pursuant to an offer of settlement in which Central States Enterprises LLC (“Central States”) neither admitted nor denied the rule violation upon which the penalty is based, a Panel of the CBOT Business Conduct Committee (“Panel”) found that as of the close of business on June 29,
2011, Central States carried end of day positions in excess of the spot month speculative position limit in July 11 Wheat futures by 595 contracts, or approximately 99%. In addition, on June 30, 2011, Central States carried end of day positions in excess of the spot month speculative position limit in July 11 Wheat futures by 522 contracts, or approximately 87%. Central States did not benefit financially from any such violation.

PENALTY:

In accordance with the settlement offer the Panel ordered Central States Enterprises LLC to pay a fine of $27,500.

EFFECTIVE DATE:

April 26, 2013