CME Group (CME.O), parent of the Chicago Board of Trade (CBOT), has ordered The Andersons Inc (ANDE.O), an Ohio-based grain business, to pay a $2 million fine for violating futures trading rules in late 2017, the exchange said in a statement on Friday (June 26, 2020).
The Andersons confirmed the settlement in a statement to Reuters and said it cooperated with the CME’s investigation.
“We do not believe we engaged in any wrongdoing,” it said in the statement.
The 6th-largest U.S. commercial grain handler by capacity operates several Ohio grain warehouses that also serve as delivery points for CBOT wheat futures.
According to CME, The Andersons registered 2,000 contracts of wheat certificates for delivery against CBOT December 2017 wheat futures on Nov. 29, 2017 – a day before the first notice day for deliveries – in an effort to manipulate the spread, or price difference, between futures contracts. Find more…