Federal Court Order Charges Floor Trader and Broker with Violating Speculative Position Limits for Cattle Futures

The CFTC announced that the United States District Court for the Northern District of Illinois issued a consent Order against a CFTC-registered floor trader and floor broker, settling charges that he exceeded speculative position limits in live and feeder cattle futures contracts.

The Order found that the floor trader and broker held an aggregate live cattle futures net long position that totaled 620 contracts, exceeding the speculative position limits by 70 contracts, as well as aggregate futures equivalent net short positions in feeder futures contracts that exceeded the speculative position limit by 81.759 and 0.152. The Order stems from a CFTC Complaint filed in November 2013 that charged the trader with exceeding the Chicago Mercantile Exchange's speculative position limits. The trader is required to pay a civil monetary penalty of $130,000 and is permanently prohibited from violating the speculative position limits of a registered entity.

See: Final Order; CFTC Press Release.
Related news: CFTC Charges CME Floor Broker and Trader with Violating Live and Feeder Cattle Futures Speculative Position Limits (November 6, 2013).