Investment Management Firm Fined for Violating Platinum Futures Position Limits

An Australia-based investment management company settled CFTC charges for exceeding position limits in platinum futures.

The CFTC found that the company exceeded the spot-month speculative position limit for platinum futures contracts on NYMEX. The limit was 500 contracts; at one point during the relevant period the company held 874 contracts. As a result, the CFTC found the company violated CEA Section 4a(b)(2) ("Excessive speculation") and CFTC Rule 150.2 ("Federal speculative position limits"). In addition, the CFTC found that the company exceeded the contract delivery limits under NYMEX Rule 562 and thus violated CEA Section 4a(e).

To settle the charges, the company agreed to (i) cease and desist from further regulatory violations, (ii) pay a $150,000 civil monetary penalty and (iii) comply with the undertakings set forth in the Order.

CFTC Commissioner Caroline D. Pham noted that this case is the first relevant enforcement action since the 2021 adoption of final position limits rules imposing federal speculative position limits (see previous coverage).