U.S. CFTC Cotton Futures Fine

On 27 June, CFTC fined company $225k on cotton trading reports.

  • Ordered Hong Kong-Based Huafu HK to Pay $225,000 for reporting violations.
  • Followed CFTC May 2013 guidance on reporting requirements over call cotton.
  • Company did not report call cotton purchases and sales, when it held futures.

Alleged Violations

  • Did not adopt internal controls reasonably designed to help ensure compliance.
  • On 78 occasions, held or controlled 100 cotton futures positions but did not file.
  • Huafu to provide employees with training to ensure future compliance on filings.