NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CME 17-0650-BC

NON-MEMBER FIRM:

Golden Belt Feeders, Inc.

CME RULE VIOLATION:

Rule 562 (“Position Limit Violations”) (in part)

Any positions in excess of those permitted under the rules of the Exchange shall be deemed position limit violations, including positions established intraday.

FINDINGS:

Pursuant to an offer of settlement in which Golden Belt Feeders Inc. (“Golden Belt”) neither admitted nor denied the rule violation upon which the penalty is based, on August 9, 2017, a Panel of the CME Business Conduct Committee (“Panel”) found that at the close of business on February 21, 2017, Golden Belt carried a net futures position of 506 contracts short in February 2017 Live Cattle futures contracts, which was 206 contracts, or 68.67%, in excess of the spot month position limit of 300 contracts in effect. On February, 22, 2017, Golden Belt liquidated its overage to bring its position into compliance, and did not profit from doing so. The Panel concluded that Golden Belt thereby violated CME Rule 562.

PENALTY:

In accordance with the settlement offer, the Panel ordered Golden Belt to pay a fine of $25,000.

EFFECTIVE DATE:

August 11, 2017