Washington, D.C. – Marubeni America Corporation has been penalized by the U.S. Commodity Futures Trading Commission (CFTC) for failing to accurately report data on its grain purchases and sales, the agency announced on March 23, 2015. The company, a major agricultural commodity dealer and the largest overseas subsidiary of Japan-based Marubeni Corporation, was found to have violated CFTC Regulation 19.01, which requires accurate submission of CFTC Form 204 reports.
The CFTC order details that Marubeni failed to properly report the composition of its fixed-price cash grain purchases and sales from July 2010 through August 2013. These reports, known as Form 204s, are crucial for verifying compliance with speculative position limits and ensuring that companies claiming hedging positions genuinely possess offsetting cash positions.
According to the CFTC, Marubeni submitted 38 inaccurate Form 204 reports during the specified period. The errors stemmed from the inclusion of both basis and fixed-price cash positions in the reports, a violation of reporting requirements. The company subsequently filed corrected reports.
As a result of these violations, Marubeni has been ordered to pay an $800,000 civil monetary penalty and to cease and desist from any further violations of CFTC Regulation 19.01. The CFTC’s Division of Market Oversight issued an advisory reminding market participants of their obligations to submit accurate Form 204 reports, referencing Staff Advisory No. 13-42.
The case was led by CFTC staff members including Matthew Hunter, Harry Hild, Eugene Kunda, and David Amato from the Division of Market Oversight, and Jordon Grimm, Linda Y. Peng, Trevor Kokal, David W. MacGregor, Lenel Hickson, Jr., and Manal M. Sultan from the Division of Enforcement.
Source: CFTC.gov
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