Release Number 8735-23

CFTC Orders Australian Company to Pay Penalty for Both Federal and Exchange Platinum Futures Position Limits Violations

June 29, 2023

— The Commodity Futures Trading Commission today issued an order filing and simultaneously settling charges against Australian-based company Challenger Life Company Limited (Challenger Life) for exceeding both the federal and exchange spot month speculative position limits for Platinum futures contracts traded on the New York Mercantile Exchange (NYMEX). The order requires Challenger Life to pay a $150,000 civil monetary penalty.

In addition to imposing a penalty, the order requires Challenger Life to cease and desist from further violations of Sections 4a(b)(2) and (e) of the Commodity Exchange Act and CFTC Regulation 150.2, as charged.

“Since 2022, in addition to position limits of the futures exchanges, the CFTC has imposed federal position limits on an expanded number of commodities, including Platinum,” said Director of Enforcement Ian McGinley. “This action is a reminder that market participants must comply with these amended CFTC position limits.”

Case Background

The spot month for the April 2022 NYMEX Platinum futures contract was from March 30, 2022 through April 27, 2022. 

The order finds that as of the close of business on March 30, 2022, Challenger Life held a net long futures position of 874 contracts in the NYMEX April 2022 Platinum futures contract. This position exceeded the federal spot month speculative position limit of 500 contracts.  

The order also finds that as of March 31, 2022 and May 9, 2022, Challenger Life exceeded the exchange’s 500-contract delivery limit for the April 2022 and May 2022 Platinum futures contracts, respectively. 

The CFTC thanks NYMEX for its assistance in this matter.

The Division of Enforcement staff members responsible for this case are Karin Roth, Carrie Kennedy, R. Stephen Painter, Jr., Lenel Hickson, Jr., and Manal Sultan.