- CFTC ordered Tyson Foods to pay $1.5mn for position limit, reporting, recordkeeping violations; filed and settled charges for the company exceeding CFTC position limits.
- Violated commodity exchange act (CEA), 7 USC 6a; CFTC regulation 1.31(b)(3) and (c), 17 CFR 1.31, as well as then-effective versions of regulations 19.01 and 150.2.
- Company exceeded position limit for soybean meal future contracts traded on CBOT.
- Failed to comply with reporting, recordkeeping obligations for cash positions in grains.
- Activity occurred on over 590 dates over 5-year period between January 2016 - January 2021.
- Positions were, on average, 2,473 (38%) over the then-applicable 6.5k contract limit.
- Also, the net long futures positions exceeded the limit by as much as 7,057 contracts.
- January 2016-August 2020, filed incorrect form 204, statements of cash positions in grain.
- Reported non-existent fixed-price cash sales of soybean meal, overstated fixed-price cash sales of corn, and failed to report purchases and sales from its grain elevator.
- Did not maintain cash transaction record of futures positions exceeding position limits.
- Recognized Tyson's substantial cooperation in investigation, reduced the civil penalty.
- Tyson ordered to pay $1.5mn civil monetary penalty, cease and desist from violations.