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Golden Agri Intl to pay $150,000 for failing to report cash positions

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Staff Writer |
Golden Agri Intl
Fine   Singapore company did not report

CFTC issued an order filing and simultaneously settling charges against Golden Agri International that operates as a processor and trader of crude palm oil, which it hedges with soybean oil futures contracts,.

The order came after failing to file reports as required by CFTC regulation. Golden Agri is a private limited company formed in Singapore and is a wholly-owned subsidiary of Golden Agri-Resources located in Indonesia.

The U.S. Commodity Futures Trading Commission (CFTC) order requires Golden Agri to pay a $150,000 civil monetary penalty, to cease and desist from committing further violations of CFTC regulation, and to undertake to adopt, maintain, and implement internal controls that are reasonably designed to ensure that it complies fully with regulation.

The order states that CFTC regulation requires that persons holding or controlling futures and options positions in certain agricultural commodities that are reportable, and any part of which constitute bona fide hedging positions, must file reports showing the composition of the fixed price cash position of each such commodity hedged including wheat, corn, oats, soybeans, soybean oil and soybean meal.

According to the order, a purpose of the report is to check compliance with speculative position limits by ensuring that filers classify their futures positions as hedging cash positions that are actually owned or controlled.

The order finds that Golden Agri held or controlled soybean oil futures positions that were reportable and, based on records provided by Golden Agri, constituted bona fide hedging positions; therefore, Golden Agri was required to file reports within 3 business days from the last Friday of the month.

As set forth in the order, Golden Agri, however, failed to file five reports as required by CFTC Regulations.

As noted in the order, four reports were subsequently filed with the CFTC 15 months after they were required to be filed and only after CFTC staff contacted Golden Agri regarding its failure to file such Reports, and a fifth report was subsequently filed with the CFTC five months after it was required to be filed.

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