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Commodity Futures Trading Commission 

CEA CASES 

NAME: HONEYMEAD PRODUCTS COMPANY 

DOCKET NUMBER: STIPULATION 35 

DATE: DECEMBER 20, 1957 

DOCUMENT TYPE: STIPULATION OF COMPLIANCE 

Memorandum of Agreement to Denial from Certain Futures Trading Practices 

The undersigned have been advised by the Commodity Exchange Authority of an 

investigation of certain transactions in soybean futures on the Chicago Board of 

Trade on July 19, 1957. The facts concerning those transactions are as follows: 

Honeymead Products Company, a registered futures commission merchant, 

forwarded simultaneously to its Chicago office on July 19, 1957, two spreading 

orders in soybean futures, one calling for the purchase of 1,000,000 bushels of 

January soybeans and the sale of 1,000,000 bushels of March soybeans, and the 

other calling for the purchase of 1,000,000 bushels of March soybeans and the 

sale of 1,000,000 bushels of January soybeans. Both orders were to be executed 

at a 3-cent difference (i.e., the March price to be 3 cents over the January), 

with the added provision that the executions broker would have 1/8th-cent leeway 

in filling the orders. One of the orders was for Honeymead Products Company's 

own account and the other was for the account of an individual closely 

identified with the company. 

Upon receipt of these orders Honeymead's Chicago representative, Richard J. 

Sennott, went into the soybean bit of the Chicago Board of Trade and executed 

the orders by negotiation with brokers James Kielty and Edward C. Wilson, Jr. in 

the following manner: 

See original document-page 1 

Bot Sold Quantity Future Price 

Honeymead Kielty 500,000 January 249 1/2

Kielty Honeymead 500,000 January 249 3/8

Honeymead Kielty 500,000 March 252 1/2

Kielty Honeymead 500,000 March 252 1/2

Honeymead Wilson 500,000 January 249 1/2

Wilson Honeymead 500,000 January 249 3/8

Honeymead Wilson 500,000 March 252 1/2

Wilson Honeymead 500,000 March 252 1/2

The Commodity Exchange Authority has advised the undersigned that in its 

opinion the transactions above described are in violation of certain provisions 

of the Commodity Exchange Act and the rules and regulations promulgated 

thereunder, particularly the portions of the act and the regulations relating to 

wash trades, accommodation trades, and the requirement that all trades be 

executed openly and competitively by open outery in the trading ring. The 

undersigned represent that is making the above described transactions they were 

not aware that they were in violation of any rule or regulations. The 

undersigned, however, hereby agree to desist from all such practices in the 

future and to comply fully with the requirements of the act and the regulations 

of the Secretary of Agriculture, and specifically to execute all transactions in 

full compliance with the competitive requirements of the law. 

The undersigned have been informed that the Commodity Exchange Authority 

plans to publicize this [ILLEGIBLE TEXT] in order that floor brokers, futures 

commission merchants, and all users of the futures markets may 
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be advised of the views of the Commodity Exchange Authority relating to 

transactions of the type covered [ILLEGIBLE TEXT]. 

[SEE SIGNATURE IN ORIGINAL] 

By: [SEE SIGNATURE IN ORIGINAL] 

[SEE SIGNATURE IN ORIGINAL] 

[SEE SIGNATURE IN ORIGINAL] 

[SEE SIGNATURE IN ORIGINAL] 

Chicago, Illinois 

December 20, 1957 

Memorandum of Agreement to Desist from Certain Futures Trading Practices signed 

by L. W. Andreas, President, for Honeymead Products Company, and by James 

Kielty, Richard J. Sennott, and Edward C. Wilson, Jr. 

LOAD-DATE: August 6, 2008 
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