CFTC Fines an Agricultural Trading Company for Call Cotton Reporting Violations

The CFTC fined Libero Commodities SA ("Libero"), an agricultural trading company, for failing to comply with its legal obligation as a reportable trader. Libero failed to submit weekly call cotton purchases and sales to the CFTC.

Specifically, the CFTC issued an Order which found that on approximately 200 occasions from May 2010 through April 29, 2014, Libero held or controlled at least 100 cotton futures positions, but failed to file weekly CFTC Form 304 Reports as required by CFTC Rule 19.02. The CFTC fined Libero $480,000 as a result of the firm's failure to file the necessary reports.

According to the CFTC, cotton merchants and dealers that hold or control at least 100 cotton futures positions are required to file CFTC Form 304 Reports that show their call cotton purchases and sales as of the close of business Friday, and no later than two business days following the date of the report.

In the press release, the CFTC noted that it previously issued a market Advisory reminding cotton market participants of their ongoing obligation to comply in a timely manner with applicable reporting obligations.

See: CFTC Order.