Page 38 - 期貨和衍生品行業(yè)監(jiān)管動(dòng)態(tài)（2024年8月刊）
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期貨和衍生品行業(yè)監(jiān)管動(dòng)態(tài)
CFTC Orders Brazilian and Swiss Sugar Companies to Pay $750,000 for Wash
Sales (2024/8/19)
The Commodity Futures Trading Commission today issued an order
simultaneously filing and settling charges against respondents Raizen Energia SA, a
Brazilian energy company and sugar merchant, and Raizen Trading SA, a Swiss sugar
merchant, for engaging in wash sales and non-competitive transactions. The order
requires the respondents jointly and severally to pay a $750,000 civil monetary
penalty. The respondents admit the facts detailed in the order and are ordered to cease
and desist from further violations of the Commodity Exchange Act and CFTC
regulations, as charged.
Case Background
The order finds from March 2022 to September 2022, the respondents engaged
in 44 wash sales and noncompetitive transactions by executing exchange for physical
transactions (EFPs) involving sugar futures contracts traded on ICE Futures U.S. An
EFP is a transaction involving a simultaneous exchange of a futures position for a
corresponding cash position, i.e., one party buys the physical commodity and
simultaneously sells or gives up a long futures contract, and the other party sells the
physical commodity and simultaneously buys or receives a long futures contract.
The order concludes the respondents’ EFPs were illegal wash sales and
noncompetitive transactions because they were executed between accounts that were
not independently controlled. According to the order, the respondents executed the
wash EFPs in order to facilitate the intercompany transfer of physical sugar between
Raizen entities and to offset futures positions the respondents took to hedge the price
risk associated with their physical sugar contracts. In the aggregate, the respondents’
wash EFPs accounted for more than 50,000 sugar contracts worth more than $1
billion.
The order acknowledges the respondents’ representations concerning their
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