CFTC Fines Firm for Violating Speculative Position Limit for Wheat Futures Contracts

The CFTC fined a London-based company $525,000 for violating the speculative position limit for wheat futures and fined a U.S. subsidiary $140,000 for submitting false information to the CFTC in connection with the Commission's investigation of the violation.

The CFTC Order settling charges against the firms found that despite having been granted an increased hedge exemption, the London-based company exceeded the CFTC's all-months speculative position limit for Chicago Board of Trade ("CBOT") wheat futures contracts during several days occurring between April and June 2009.

In addition, the CFTC Order found that in March 2013, a subsidiary of the company submitted information concerning the company's positions that inflated the hedge exemption making it materially false and misleading.