U.S. – CFTC Wheat Futures Limit Fine

U.S. – CFTC Wheat Futures Limit Fine

On 2 July 2019, CFTC charged hedge fund for breach of position limits.

  • Elephas Investment Management Ltd., a Hong Kong based hedge fund fined,
    for violating wheat futures speculative position limit in the CBT in November 2017.

Allegations

  • Order found that on 29 November 2017, Elephas held a net long position in CBT
    trade’s December 2017 soft red winter wheat futures contract, holding over 1,000.
  • This was in excess of the spot month speculative position limit as set by CFTC.

Settlement

  • The investigation was conducted in conjunction with related inquiries by CME
    Group (CME), which also announced a parallel disciplinary action on Elephas.
  • The Order requires Elephas to pay a $160k civil monetary penalty to the CME.