NEW YORK Oct 14 A division of Olam
International Ltd has agreed to pay $100,000 as a
penalty to settle potential violations of the ICE Futures U.S.
"cash and carry" rule for the September 2011 cocoa futures
contract, the exchange said on Monday.
Olam neither admitted nor denied any rule violations and has
agreed to pay the penalty and to cease and desist from future
violations of the rule, according to an emailed statement from
Olam Americas did not immediately respond to requests for
A subcommittee previously determined that Olam Americas may
have violated ICE's "cash and carry" exemption twice in
September 2011 just prior to the last trading day for the
contract, according to the ICE notice.
The rule helps maintain a market contango, in which the
price of a futures contract for a commodity exceeds the spot
price, in situations where there are plentiful supplies. When
using the exemption, a trader must liquidate all long positions
in a spot month when the nearby contract rises to a premium
above the second-month contract.