Release #4218-98 (CFTC Docket No. 99-3)
For Release: December 22, 1998
CFTC FILES ADMINISTRATIVE COMPLAINT AGAINST FIRST OPTIONS OF CHICAGO, INC., CHARGING RECORDKEEPING VIOLATIONS
CFTC Alleges that First Options Failed to Promptly Produce and Retain Required Records
WASHINGTON - The Commodity Futures Trading Commission (CFTC) announced today that it has filed a one-count administrative complaint alleging that First Options of Chicago, Inc. (First Options), a registered futures commission merchant doing business in Chicago, Illinois, violated recordkeeping provisions of the Commodity Exchange Act (CEA) and CFTC regulations.
The complaint alleges that First Options failed to produce promptly both the originals and carbon copies of certain floor order tickets and failed to retain the carbon copies as required by the CEA and CFTC regulations.
Specifically, the complaint charges that First Options took almost 14 months to make substantial production of the approximately 150 original floor order tickets requested by the CFTC in March 1995, in connection with an alleged trade allocation investigation. According to the complaint, First Options produced only three carbon copies of the requested order tickets. The complaint alleges that First Options violated Section 4g of the CEA and CFTC regulations 1.31 and 1.35.
A public hearing has been ordered to determine whether the allegations are true, and, if so, what sanctions, if any, are appropriate and in the public interest.
Possible sanctions include an order directing First Options to cease and desist from violating the CEA and CFTC regulations as charged; revocation, suspension or conditioning of First Options’ registration; a trading prohibition; and a civil monetary penalty of not more than the higher of $100,000 or triple the monetary gain to First Options for each violation of the CEA or CFTC regulations.
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