TRADER CHARGED BY CFTC WITH VIOLATING CATTLE FUTURES SPECULATIVE POSITION LIMITS

FROM:  U.S. COMMODITY FUTURE TRADING COMMISSION 
CFTC Charges Illinois Resident, CME Floor Broker and Trader James C. Yadgir with Violating Live and Feeder Cattle Futures Speculative Position Limits

Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that it filed an enforcement action in the U.S. District Court for the Northern District of Illinois against James C. Yadgir of Palatine, Illinois, charging Yadgir with exceeding the Chicago Mercantile Exchange’s (CME) speculative position limits in live cattle futures contracts in April 2011 and in feeder cattle futures contracts in May 2012. As the CFTC approved the CME speculative position limits for both futures contracts, the Complaint alleges that Yadgir, a CME Floor Broker and Trader, violated the Commodity Exchange Act, which prohibits any person from holding futures contract positions or options on such contracts in excess of established CFTC-approved speculative position limits.

According to the CFTC’s Complaint, on April 6, 2011, Yadgir held an open net position in April 2011 live cattle future contracts that exceeded his 550 contracts long spot month spread exemption position limit by 70 contracts.

The Complaint further alleges that on May 23 and 24, 2012, Yadgir violated the CME’s speculative position limits in feeder cattle futures contracts. As charged in the Complaint, Yadgir’s aggregate futures equivalent net position in May 2012 feeder cattle futures on May 23, 2012 exceeded the speculative position limit of 300 contracts in the last 10 days of trading by over 81 contracts. Yadgir also allegedly exceeded the feeder cattle futures speculative position limit on May 24, 2012, the expiration day of the May 2012 contract. According to the Complaint, Yadgir admitted to the violations alleged in the Complaint.

Yadgir has been registered with the CFTC as a floor trader since 1993 and as a floor broker since 2007.

The federal Complaint seeks a permanent injunction in addition to other remedial relief, including a trading ban and a civil monetary penalty.

CFTC Division of Enforcement staff members responsible for this case are Mark A. Picard, Michael R. Berlowitz, Elizabeth Pendleton, David Acevedo, Trevor Kokal, Lenel Hickson, Jr., Stephen J. Obie, Manal Sultan, and Vincent A. McGonagle, with assistance from Margaret Sweet of the CFTC Office of Data Technology.