According to CFTC, MLCI will pay $350,000 as civil monetary penalty and has agreed to cease and desist from further such violations under the Commodity Exchange Act (CEA).
The violation of excess speculative position limits on ICE had occurred over four consecutive days from 31 January 2011, through 3 February 2011, wherein, MLCI held net futures equivalent positions beyond CFTC’s speculative position limit.
The CFTC’s legal speculative position contract limit in all months is 5,000 and in any single month is 3,500.
Bank of America spokesman for Charlotte, North Carolina Bill Halldin said that preventive measures have been taken to curb recurrence while strengthening its position-limit monitoring system, as reported by Bloomberg.
