• NOTICE OF DISCIPLINARY ACTION

      • #
      • CME 11-08105-BC
      • Effective Date
      • 23 February 2012
    • FILE NO.:

      CME 11-08105-BC


      NON-MEMBER:

      DICKEN COMMODITIES INC.


      CME RULE  VIOLATION:

      Rule 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 Dicken Commodities Inc. (“Dicken”), neither admitted nor denied the findings or any rule violation upon which the penalty is based and after voluntarily submitting itself to the jurisdiction of the Exchange for purposes of resolving this matter, on February 21, 2012, a Panel of the CME Business Conduct Committee found that on February 8, 2011, a date subject to a 450 contract end of month position limit for the expiring February 2011 Live Cattle futures (“Feb Cattle”) contract, Dicken maintained an aggregate Feb Cattle position in excess of the allowable limit outlined in CME Rule 10102.E.b. (Live Cattle Futures -Position Limits). At the start of trading on February 8, 2011, Dicken was short an aggregate 615 Feb Cattle contracts, 165 contracts (36.7%) over the end of month position limit.

      The Panel found that in so doing, Dicken violated CME Rule 562 (Position Limit Violations).


      PENALTY:

      In accordance with the settlement offer, the Panel ordered Dicken to pay a fine of $25,000.


      EFFECTIVE DATE:

      February 23, 2012