September 24, 2014

CFTC Orders Kennith Wayne Thrasher and Kennith Luke Thrasher to Pay $525,000 Penalty for Violating Speculative Position Limits in Live Cattle Futures

Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) today issued an Order filing and simultaneously settling charges against Kennith Wayne Thrasher (Kennith Thrasher) and his son, Kennith Luke Thrasher (Luke Thrasher), for exceeding the spot month speculative position limit for live cattle futures contracts traded on the Chicago Mercantile Exchange (CME). The Order requires Kennith and Luke Thrasher to pay a $525,000 civil monetary penalty.

The Order finds that Kennith and Luke Thrasher directly or indirectly controlled trading of the live cattle futures positions set forth in the Order for the accounts of two cattle feeding operations, Canadian Feedyards LLLP (Canadian Feedyards) and Pride Feeders LLLP (Pride Feeders). On 12 trading days from February 4 through February 20, 2013, those accounts held aggregated net long positions which exceeded the spot month speculative position limit for live cattle futures contracts established by the CME and approved by the CFTC, by at least 190 contracts and as much as 390 contracts. Neither Kennith or Luke Thrasher nor Canadian Feedyards or Pride Feeders obtained an exemption from the CME’s speculative position limit rules to permit the aggregate position in live cattle futures contracts held by the Canadian Feedyards and Pride Feeders accounts to exceed the applicable CME position limit.

In addition to imposing the $525,000 civil monetary penalty, the Order requires Kennith and Luke Thrasher to cease and desist from further violations of Section 4a(e) of the Commodity Exchange Act, 7 U.S.C. § 6a(e) (2012), as charged, and to comply with the conditions, undertakings, and representations as set forth in the Order.

CFTC Division of Enforcement staff members responsible for this action are Karin N. Roth, David W. MacGregor, Douglas K. Yatter, Lenel Hickson, Jr., and Manal M. Sultan.

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Dennis Holden
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Last Updated: September 24, 2014