CFTC Enforcement Action: Position Limits Penalty for Violating Wheat and Cotton Futures Limits (with Lofchie Comment)

The CFTC announced the filing and settlement of charges against Australia and New Zealand Banking Group Ltd. for exceeding speculative position limits in wheat and cotton futures contracts in trading on the Chicago Board of Trade and ICE Futures US. The CFTC ordered a $350,000 civil monetary penalty and cease and desist from further violations of the position limits provisions of the Commodity Exchange Act and CFTC regulations.

Lofchie Comment: This is the third CFTC position limits enforcement action in the last several days; it's starting to feel like a trend. Clients interested in the manner in which position limits are calculated and/or 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.Related news entries: September 24 entry on wheat position limits violation; September 26 entry on cotton and soybean futures position limits violation.