September 30, 2015

CFTC Orders Minneapolis-based Alfred C. Toepfer International, Inc. to Pay $400,000 for Inaccurately Reporting Positions in Multiple Grains

Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today issued an Order filing and simultaneously settling charges against Alfred C. Toepfer International, Inc. (Toepfer), a global merchandiser of agricultural commodities, for failing to comply with its legal obligation to submit accurate monthly CFTC Form 204 Reports regarding the composition of Toepfer’s fixed price cash grain purchases and sales, in violation of the reporting requirements in CFTC Regulation 19.01. The CFTC Order requires Toepfer to pay a $400,000 civil monetary penalty and to cease and desist from further violations of Regulation 19.01. Toepfer is based in Minneapolis, Minnesota.

The CFTC Order states that under CFTC Regulations all persons holding or controlling reportable futures and options positions in certain agricultural commodities (including wheat, corn, oats, soybeans, soybean oil, and soybean meal) and any part of which constitute bona fide hedging positions (as defined in CFTC Regulation 1.3(z)), are required to file CFTC Form 204 reports. Form 204 reports show the composition of their fixed price cash position in each such commodity hedged to check compliance with speculative position limits by ensuring that filers that classify their futures positions as hedging actually own or control offsetting cash positions.

The Order finds that during the period from at least May 2010 through December 2013, Toepfer held reportable positions in Form 204 commodities and was required to file Form 204 reports showing the quantities of the fixed price purchase and sale open cash positions of such commodities it hedged. The Order further finds that during the period, Toepfer filed 44 Form 204 reports with the CFTC that did not accurately state the quantities of Toepfer’s fixed price cash positions of each such commodity it hedged.

Specifically, the Order finds that Toepfer included in its Form 204 reports both basis and fixed priced cash positions. Toepfer, thereafter, submitted corrected Form 204 reports and displayed significant cooperation during the CFTC’s investigation of the matter. The Order also finds that Toepfer has instituted remedial action to strengthen the internal controls and policies relating to the preparation of CFTC Form 204 reports.

Consistent with this filing, the CFTC’s Division of Market Oversight has issued an advisory regarding the obligation of market participants to submit accurate Form 204 reports (see CFTC Staff Advisory No. 13-42, Obligation of Reportable Market Participants to File CFTC Form 204 Reports, which is linked in CFTC Press Release 6639-13, July 8, 2013).

CFTC Division of Market Oversight staff members responsible for this matter are Matthew Hunter, Harry Hild, Eugene Kunda, Adam Charnisky, and David Amato. CFTC Division of Enforcement staff members responsible for this action are Jordon Grimm, Traci Rodriguez, Luke Marsh, and Paul Hayeck.

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Last Updated: September 30, 2015