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Mexican Meat Processor Fined
9/18 11:27 AM
OMAHA (DTN) -- A Mexican-based meat processor has settled a $60,000 monetary penalty with the Commodity Futures Trading Commission and CME for violating speculative limits on a contract.
Sukarne SA de CV was challenged by the CFTC for holding a net-short position on 500 contracts in the Chicago Mercantile Exchange (CME) June 2020 live cattle futures contract. The contracts exceeded CFTC's spot-month speculation limit of 300 contracts established by the CFTC.
The CFTC order requires a $35,000 monetary penalty, along with CME sanctions of $25,000 against Sukarne, bringing the total penalty to $60,000.
CME rules limit spot-month contracts on the live cattle markets to 300 contracts, long or short, effective on the business day prior to the last five trading days of the contract month, which in this case was the close of trading on June 23. At the close of business that day, Sukarne still had 500 contracts.
Sukarne came into compliance on June 24 and continued to abide by the spot-month position limits for the remainder of the expiration of the contract. Sukarne eventually trade out of its position on June 29.
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