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Mexican meat processor to pay fine for violating cattle futures speculative position limits

Christian Fernsby ▼ | September 21, 2020
The Commodity Futures Trading Commission issued an order filing and settling charges against Sukarne SA de CV, a Mexico-based meat processor, for violating live cattle futures speculative position limits.
Sukarne SA de CV
Processor   Sukarne SA de CV
The order requires Sukarne to pay a $35,000 civil monetary penalty. This case is brought in connection with the CFTC’s Livestock Markets Task Force.

Topics: Mexican

The order finds that on June 23, 2020, Sukarne held a net short position of 500 contracts in the Chicago Mercantile Exchange (CME) June 2020 live cattle futures contract. This exceeded the spot month speculative position limit of 300 contracts established by CME.

The CFTC’s investigation was conducted in conjunction with a related inquiry by CME, which today also announced a disciplinary action against Sukarne.

In determining its penalty, the CFTC recognized that CME has imposed a $25,000 sanction on Sukarne for violating the exchange’s position limits rules, raising the total monetary penalty amount to $60,000.