April 29, 2014
Federal Court Orders James C. Yadgir of Palatine, Illinois to Pay $130,000 Penalty for Violating Speculative Position Limits for Cattle Futures
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that Judge Sara L. Ellis of the U.S. District Court for the Northern District of Illinois entered a final judgment and consent Order for permanent injunction against James C. Yadgir of Palatine, Illinois, who has been registered with the CFTC as floor trader since 1993 and as floor broker since 2007. The Order settles charges that Yadgir exceeded speculative position limits in live cattle futures contracts on one day and feeder cattle futures contracts on two other days. The Order requires Yadgir to pay a civil monetary penalty of $130,000 and permanently prohibits him from violating speculative position limits of a registered entity, which have been either approved by the CFTC or certified by a registered entity.
The Order stems from a CFTC Complaint filed on November 5, 2013 (see CFTC Press Release and Complaint 6764-13, November 5, 2013), charging Yadgir with exceeding the Chicago Mercantile Exchange’s (CME) speculative position limits for live cattle future contracts on April 6, 2011 and feeder cattle future contracts on May 23 and May 24, 2012.
The Order finds that on April 6, 2011, Yadgir held an aggregate live cattle futures net long position that totaled 620 contracts, exceeding his speculative position limit by 70 contracts. The Order further finds that on May 23 and May 24, 2012, Yadgir held aggregate futures equivalent net short positions in feeder cattle futures contracts that totaled 381.759 and 300.152 contracts, respectively, exceeding the speculative position limit by 81.759 and 0.152 contracts, respectively. The Order also finds that Yadgir admitted to exceeding the CME’s speculative position limits on the three days charged in the Complaint.
CFTC staff members responsible for this case are Michael R. Berlowitz, Mark A. Picard, Elizabeth Pendleton, David Acevedo, Trevor Kokal, Margaret M. Sweet, Lenel Hickson, Jr., and Manal M. Sultan.
Last Updated: April 29, 2014