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Commodity Futures Trading Commission 

CEA CASES 

NAME: JEWELL FLOYD 

DOCKET NUMBER: STIPULATION 11 

DATE: APRIL 26, 1950 

DOCUMENT TYPE: STIPULATION OF COMPLIANCE 

UNITED STATES OF AMERICA 

BEFORE THE SECRETARY OF AGRICULTURE 

In re Jewell Floyd 

Stipulation of Compliance under the Commodity Exchange Act No. 11 

WHEREAS, the Secretary of Agriculture has reason to believe that Jewell 

Floyd, registered as a floor broker under the Commodity Exchange Act, as 

amended, (hereinafter called the Act) has violated Section 4c(A) of the 

Commodity Exchange Act in connection with a transaction involving the purchase 

and sale of 800 bales of May 1950 cotton and 400 bales of July 1950 cotton on 

the New York Cotton Exchange for the account of Ben W. Townes and Company, and 

WHEREAS, no complaint with respect to such violations has been issued, and 

WHEREAS, the said Jewell Floyd desires to enter into a stipulation of 

compliance pursuant to the provisions of Section 0.4 (a) of the Rules of 

Practice under the Act, 

NOW, THEREFORE, the said Jewell Floyd admits that the following facts are 

true: 

1. The New York Cotton Exchange was at the times hereinafter mentioned and is 

now duly designated as a contract market under the provisions of the Act. 

2. Jewell Floyd was at the times hereinafter mentioned and is now a member of 

the New York Cotton Exchange and a registered floor broker under the provisions 

of the Act. 

3. The May 1950 and July 1950 cotton futures contracts traded in on the New 

York Cotton Exchange were, or could have been, used for (a) hedging a 

transaction in interstate commerce in cotton or the products or byproducts 

thereof, or (b) determining the price basis of a transaction in interstate 

commerce in cotton. 

4. On August 8, 1949, the said Jewell Floyd received orders from Ben W. 

Townes and Company of Greenwood, Mississippi, for the purchase and sale of 

certain cotton futures contracts to be executed on the New York Cotton Exchange. 

5. On August 8, 1949, the said Jewell Floyd, acting in the capacity of floor 

broker in the execution of the aforementioned orders, recorded on his trading 

card the purchase of 800 bales of 1950 May cotton at 29.65 cents per pound 

against the sale of the same quantity of the same future at the same price, both 

the purchase and sale being recorded for the account of Ben W. Townes and 

Company. 

6. On August 8, 1949, the said Jewell Floyd, acting in the capacity of floor 

broker in the execution of the aforementioned orders, recorded on his trading 

card the purchase of 400 bales of 1950 July cotton at 29.11 cents per pound 

against the sale of the same quantity of the same future at the same price, both 

the purchase and sale being recorded for the account of Ben W. Townes and 

Company. 
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7. The transactions described in 5 and 6 above involved no change in 

ownership and were actually of the character of "wash" sales or fictitious 

sales. 

8. The said Jewell Floyd caused the transactions described in 5 and 6 to be 

recorded by the New York Cotton Exchange under the provision of Rule 1.06 (1) of 

the New York Cotton Exchange as being purchases and sales for different 

principals when in fact the transactions in question involved only one 

principal. 

In addition to admitting the foregoing facts, the said Jewell Floyd does 

hereby agree to discontinue all such acts and practices, and all other acts and 

practices which are in violation of the Commodity Exchange Act, as amended, and 

does further specifically agree that this stipulation shall be admissible as 

evidence of acts and practices in violation of sections 4c(A) of the Commodity 

Exchange Act, as amended, in any subsequent proceeding brought against the said 

Jewell Floyd under the provisions of the said Act. 

Done at New York, New York, This 26 day of April 1950. 

/s/ Jewell Floyd 

Jewell Floyd 

Witnessed by /s/ Geo. H. Baston 

/s/ Robert L. Caldwell 

LOAD-DATE: June 16, 2008 
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