CFTC fines Glencore Agriculture, Glencore Ltd $2 million for trading violations

(Reuters) - The U.S. Commodity Futures Trading Commission (CFTC) on Monday said it has levied a fine of $2 million against Glencore Agriculture B.V. and Glencore Ltd. for multiple violations under the Commodity Exchange Act and CFTC regulations between January 2013 and November 2015.

The two entities held net positions in the ICE Futures cotton no. 2 contracts that, on an aggregated basis, exceeded the speculative position limits established by the regulator on multiple trading days during May and June 2013, and May and June 2014, the CFTC said in a statement.

On 24 occasions between January 2013 and November 2015, Glencore B.V. and Glencore Ltd. executed exchange of futures for physical transactions opposite each other’s cotton futures trading accounts, even though their accounts were not independently controlled as required for such transactions not to constitute illegal wash trades, it said.

Additionally, Glencore B.V. submitted a Form 304, on at least two occasions in 2013 and 2014, that failed to represent accurately all required information, including its short cash sales commitments, according to the CFTC statement.

A spokesman for Glencore declined to comment.

Reporting by Vijaykumar Vedala in Bengaluru; editing by Diane Craft