September 25, 2019

CFTC Charges Illinois-Based Trader with Violating Soybean Futures Speculative Position Limits

Washington, DC – The U.S. Commodity Futures Trading Commission today issued an order filing and settling charges against ARMKAT LLC, located in Winnetka, Illinois, for violating spot-month speculative position limits in soybean oil and soybean meal futures.

The order finds that on November 29, 2016, ARMKAT held 900 contracts short in the Chicago Board of Trade’s December 2016 Soybean Oil futures contract, which exceeded the 540-contract, spot-month limit established by the CFTC.  Additionally on July 31, 2018, ARMKAT held 875 short August 2018 Soybean Meal futures contracts, which exceeded the 720-contract, spot-month limit. 

The order requires ARMKAT to pay a $140,000 civil monetary penalty.

The CFTC’s investigation was conducted in parallel with a related inquiry by the CME Group (CME), which today also announced a disciplinary action.  The CFTC acknowledges and appreciates the assistance of the CME.

The CFTC Division of Enforcement staff members responsible for this case are Nicholas Sloey, Lauren Fulks, Jenny Chapin, Jo Mettenburg, Christopher Reed, Charles Marvine, Janet Briner, Linda Chalet, Kelly Beck, and Matthew Hunter.

-CFTC-