Morgan Stanley Capital Group (MSCGI) has agreed to pay a USD200,000 civil monetary penalty to settle CFTC charges that it exceeded speculative position limits in soybean meal futures contracts trading on the Chicago Board of Trade (CBOT).
The CFTC order finds that, beginning on 14 January 2013, MSCGI held in its house accounts net long positions in the CBOT soybean meal futures contract in excess of the all-months speculative position limit of 6,500 contracts established by the CFTC.
The order further finds that, on 15 January 2013, MSCGI decreased its net long position in CBOT soybean meal futures, but its position still exceeded the soybean all-months position limit.
On 16 January 2013, MSCGI reduced its position below the CBOT soybean meal position limit, according to the CFTC order.
In addition to imposing the USD200,000 civil monetary penalty, the CFTC order requires MSGCI to cease and desist from further violations of Section 4a(b)(2) of the Commodity Exchange Act and CFTC Regulation 150.2, as charged.
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