NEW YORK The CME Group has ordered Glencore Ltd. to repay $66,200 in profits made on copper trading that allegedly violated Commodity Exchange (Comex) position limit rules and fined the company $25,000, in accordance with a settlement offer.
The Comex Business Conduct Committee (BCC) found that Glencore held a position of 3,130 short contracts in the Dec. 12 copper contract on trading date Nov. 29, 2012, 36.1 percent more than the expemption level of 2,300 short contracts allowed by Comex. When Glenore liquidated the overage position it realized profits of $66,200, the CME said. This violated Rule 562 of the exchange, the BCC panel found.
Glencore, which attended a panel hearing with the committee on July 31, did not admit to or deny any rule violation.
Glencore and the CME declined to comment.