Release: 4533-01 (CFTC Docket 01-11)
For Release June 26, 2001

CFTC FILES ACTION AGAINST CALIFORNIA RESIDENT FOR VIOLATING EXCHANGE TRADING LIMITS

CFTC Alleges that Andy Saberi Violated the Trading Limits For Pork Belly Futures Set by the Chicago Mercantile Exchange

WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced today that it filed a one-count complaint on June 26, 2001, against Andy Saberi (Saberi) of Hillsborough, California. The complaint alleges that Saberi, a commodities trader, exceeded exchange trading limits for frozen pork belly futures at the Chicago Mercantile Exchange (CME).

Specifically, the complaint alleges that at the close of trading on August 14, 2000, Saberi held a net short position of ninety-three (93) August 2000 frozen pork belly futures contracts when the CME trading limit stood at fifty (50) contracts. The complaint further alleges that an account executive warned Saberi of the limit early in the trading session on August 14, 2000. According to the complaint, Saberi had enough time to comply with the trading limit prior to the close of trading on August 14, 2000, but he did not reduce his position until after receiving a second warning on August 15, 2000. As charged in the complaint, Saberi profited substantially from the violation, which occurred during a period of significant market congestion.

A public hearing has been ordered to determine whether the allegations are true and, if so, what sanctions are appropriate. Possible sanctions include a cease and desist order, a trading prohibition and a civil monetary penalty.

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A copy of the CFTC complaint may be found at: http://www.cftc.gov.

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