CFTC Orders Merrill Lynch Commodities, Inc. to Pay $350,000 Civil Penalty for Violating Cotton Futures Speculative Position Limits (Press Release Order)

CFTC Press Release 6154-11

Order: Merrill Lynch Commodities, Inc.

The CFTC announced that Merrill Lynch Commodities, Inc. (MLCI) agreed to pay a $350,000 civil monetary penalty to settle CFTC charges that it exceeded speculative position limits in Cotton No. 2 futures contracts in trading on the IntercontinentalExchange U.S. (ICE).

According to the CFTC order, MLCI held net futures equivalent positions in Cotton No. 2 futures contracts in excess of CFTC speculative position limits on ICE over four consecutive days from January 31, 2011, through February 3, 2011.

Cross References: Dodd Frank Section 737; CEA Section 4a(b)(2); CFTC Rule 150.2; Lofhie's Guide to CPO/CTA Regulation: Chapter 8, Trading.