CFTC fines Newedge for violating cattle limits
News Article
February 7, 2011
The CFTC is requiring Newedge USA LLC, one of the world's largest futures brokerages, to pay more than $220,000 to settle charges that it sharply exceeded limits to investor positions in cattle futures. The CFTC said the Chicago-based futures commission merchant exceeded speculative position limits in the October 2009 live cattle futures contract by more than 4,000 contracts, almost nine times the limit.
The CFTC has vowed to crack down on traders exceeding speculative limits in order to prevent market manipulation. The futures regulator on January 26 also fined two rice traders a total of $2 million for excessive speculation in U.S. rice futures as prices raced to all-time highs in 2008.
Cross References
CEA Sec. 4a