The CFTC simultaneously filed and settled charges against an entity acting as a processor and a trader of crude palm oil, which it hedged with soybean oil futures contracts, for failing to file the required CFTC Form 204 reports.
The CFTC explained that the respondent held or controlled soybean oil futures positions that, pursuant to CFTC Rules 15.00(p)(2) and 19.00, were reportable within three business days from the last Friday of the month. The respondent filed reports on the positions 5 to 15 months after they were required to be filed, and only after the CFTC had contacted its staff. As a result, the CFTC fined the respondent $150,000 and, inter alia, ordered it to implement internal controls reasonably designed to ensure future compliance with the requirements.
The CFTC emphasized that its Division of Market Oversight issued a July 8, 2013 Market Advisory regarding specified market participants' obligation to file CFTC Form 204 reports.
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