September 21, 2012
CFTC Orders Citigroup Inc. and Citigroup Global Markets Ltd. to Pay $525,000 Penalty for Violating Wheat Futures Speculative Position Limits
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today issued an order filing and settling charges that Citigroup Inc. (Citigroup) of New York, N.Y., and Citigroup Global Markets Ltd. (CGML) of London, England, exceeded speculative position limits in wheat futures contracts in trading on the Chicago Board of Trade (CBOT), which is part of CME Group, Inc. The CFTC order requires Citigroup and CGML to pay a $525,000 civil monetary penalty and cease and desist from further violations of section 4a(b)(2) of the Commodity Exchange Act and CFTC regulation 150.2, as charged.
The CFTC order finds that on several occasions in December 2009, Citigroup, via two of its wholly owned subsidiaries, including CGML, held aggregate net long positions in the wheat contract traded on the CBOT in excess of the CFTC’s all months speculative position limits. Additionally, on one or more days in December 2009, CGML individually held net long positions in wheat contracts that exceeded the all months speculative position limits established by the CFTC, the order finds. The position limit for CBOT wheat was 6,500 contracts for all months combined.
CFTC Division of Enforcement staff members responsible for this case are Michael R. Berlowitz, Trevor Kokal, David Acevedo, Jeremy Cusimano, Lenel Hickson, Jr., Stephen J. Obie, and Vincent A. McGonagle.
Last Updated: September 21, 2012