CFTC Fines Citi Global Markets for $525,000 for Violating Speculative Wheat Position Limits

The U.S. Commodity Futures Trading Commission issued an order filing and settling charges that Citigroup Inc. (Citigroup) of New York, N.Y., and Citigroup Global Markets Ltd, of London, England, exceeded speculative position limits in wheat futures contracts in trading on the Chicago Board of Trade , which is part of CME Group, Inc.

The CFTC order requires Citigroup and CGML to pay a $525,000 civil monetary penalty and cease and desist from further violations of section 4a(b)(2) of the Commodity Exchange Act and CFTC Regulation 150.2, as charged.

Wheat futures are trading at 897.250.

Wheat CFD's are offered on platforms such as MT4 and iTrader, typical spreads are 0.50 and 1 standard lot equates to 5,000 bushels with each tick value at $12.50.

The CFTC order finds that on several occasions in December 2009, Citigroup, via two of its wholly owned subsidiaries, including CGML, held aggregate net long positions in the wheat contract traded on the CBOT in excess of the CFTC’s all months speculative position limits. Additionally, on one or more days in December 2009, CGML individually held net long positions in wheat contracts that exceeded the all months speculative position limits established by the CFTC, the order finds. The position limit for CBOT wheat was 6,500 contracts for all months combined.