CFTC Orders China-Based Weidong Ge and Sheenson Investments, Ltd. to Pay $1.5 Million in Monetary Sanctions for Violating Speculative Position Limits in Cotton and Soybean Futures

The CFTC announced that Weidong Ge (Ge) and Sheenson Investments, Ltd. (Sheenson), both of Shanghai, China, agreed to pay disgorgement of $1 million and a $500,000 civil monetary penalty to settle CFTC charges that they exceeded speculative position limits in Soybean Oil and Cotton No. 2 futures contracts. This is the second major enforcement action (link to news item on a prior action) the CFTC has issued in a week relating to position limits in agricultural commodities.

Clients interested in the manner in which position limits are calculated and will be calculated may contact Paul Pantano or their usual Cadwalader attorney who will refer them appropriately.

View order here(links externally to CFTC website).See also: CFTC Press Release.