Release Number 8248-20
Mexican Meat Processor to Pay Fine for Violating Cattle Futures Speculative Position Limits
September 18, 2020
Washington, D.C. — The Commodity Futures Trading Commission today issued an order filing and settling charges against Sukarne SA de CV, a Mexico-based meat processor, for violating live cattle futures speculative position limits. The order requires Sukarne to pay a $35,000 civil monetary penalty. This case is brought in connection with the CFTC’s Livestock Markets Task Force.
The order finds that on June 23, 2020, Sukarne held a net short position of 500 contracts in the Chicago Mercantile Exchange (CME) June 2020 live cattle futures contract. This exceeded the spot month speculative position limit of 300 contracts established by CME.
The CFTC’s investigation was conducted in conjunction with a related inquiry by CME, which today also announced a disciplinary action against Sukarne. In determining its penalty, the CFTC recognized that CME has imposed a $25,000 sanction on Sukarne for violating the exchange’s position limits rules, raising the total monetary penalty amount to $60,000. The CFTC thanks CME for its assistance in this matter. CFTC’s Division of Market Oversight staff member David Amato also assisted in this matter.
The Division of Enforcement staff responsible for this matter are Douglas Snodgrass, Linda Chalet, Kelly Beck, Scott Williamson, and Robert Howell.