Washington, D.C. – Morgan Stanley Capital Group Inc. (MSCGI) has agreed to pay $200,000 to settle charges brought by the U.S. Commodity Futures Trading Commission (CFTC) for exceeding speculative position limits in soybean meal futures contracts. The settlement, announced on March 24, 2014, resolves allegations that MSCGI violated federal regulations regarding position limits on the Chicago Board of Trade (CBOT).
According to the CFTC’s order, beginning January 14, 2013, MSCGI held net long positions in CBOT soybean meal futures contracts that surpassed the CFTC-established limit of 6,500 contracts. The agency found that despite reducing its position on January 15, 2013, MSCGI remained over the limit. The company finally brought its position below the limit on January 16, 2013.
The CFTC charged MSCGI with violating Section 4a(b)(2) of the Commodity Exchange Act and CFTC Regulation 150.2. In addition to the $200,000 civil monetary penalty, the order mandates that MSCGI cease and desist from any further violations of these regulations.
The case was handled by CFTC Division of Enforcement staff members Karin N. Roth, David W. MacGregor, Lenel Hickson, Jr., and Manal M. Sultan. The resolution underscores the CFTC’s commitment to enforcing position limit rules designed to prevent market manipulation and ensure fair trading practices in agricultural commodity markets.
Representatives for Morgan Stanley Capital Group did not immediately respond to requests for comment.
Source: CFTC.gov
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