Washington, D.C. – Australian-based Challenger Life Company Limited has been ordered to pay a $150,000 penalty by the Commodity Futures Trading Commission (CFTC) for violating federal and exchange-imposed speculative position limits on Platinum futures contracts. The CFTC issued the order and settlement on June 29, 2023.
The charges stem from Challenger Life exceeding established limits for NYMEX Platinum futures contracts during the April 2022 and May 2022 contract months. Specifically, the company held 874 contracts in the April 2022 contract, surpassing the 500-contract federal spot month speculative position limit as of March 30, 2022. Further violations occurred on March 31, 2022, and May 9, 2022, where Challenger Life exceeded the exchange’s 500-contract delivery limit for both the April and May 2022 contracts, respectively.
The CFTC order mandates that Challenger Life cease and desist from any further violations of Sections 4a(b)(2) and (e) of the Commodity Exchange Act, along with CFTC Regulation 150.2. These regulations govern position limits designed to prevent market manipulation and ensure fair trading practices.
“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,” stated Ian McGinley, Director of Enforcement. “This action is a reminder that market participants must comply with these amended CFTC position limits.”
The investigation was conducted by CFTC staff members Karin Roth, Carrie Kennedy, R. Stephen Painter, Jr., Lenel Hickson, Jr., and Manal Sultan. The CFTC also acknowledged the assistance provided by the New York Mercantile Exchange (NYMEX) during the course of the inquiry.
Source: CFTC.gov
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