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Commodity Futures Trading Commission 

CEA CASES 

NAME: ROBERT E. O'GRADY, CARL D. LEAVEN, LEONARD B. FELDMAN, DONALD T. BARCLAY, 

TIME TRADING CO., and RITTENHOUSE INVESTMENTS, INC. 

CITATION: 30 Agric. Dec. 1819 

DOCKET NUMBER: 184 

DATE: DECEMBER 7, 1971 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 14,323) 

In re ROBERT E. O'GRADY, CARL D. LEAVEN, LEONARD B. FELDMAN, DONALD T. BARCLAY, 

TIME TRADING CO., and RITTENHOUSE INVESTMENTS, INC. CEA Docket No. 184. 

Decided December 7, 1971. 

Wash sales -- Cease and desist order re Donald T. Barclay and Rittenhouse 

Investments, Inc. -- Denial of trading privileges for 10 days re Donald T. 

Barclay -- Stipulation 

Respondents Barclay and Rittenhouse are ordered to cease and desist from 

violations of the act involving wash sales and transactions that are not open 

and competitive, and respondent Barclay is prohibited from trading on the 

contract markets for a period of 10 days. 

Earl L. Saunders for Commodity Exchange Authority. 

Respondents Barclay and Rittenhouse pro se. 

Decision by Thomas J. Flavin, Judicial Officer 

PRELIMINARY STATEMENT

This is an administrative proceeding under the Commodity Exchange Act (7 

U.S.C. 1 et seq.), instituted by a complaint and notice of hearing: issued on 

September 10, 1971. The respondents are charged with violating section 4c of 

the Act (7 U.S.C. 6c) and section 1.38 of the regulations thereunder (17 CFR 

1.38). 

No hearing has been held with respect to any of the respondents. On November 

18, 1971, a consent order was issued against respondents O'Grady, Leaven, 

Feldman and Time Trading Co., concluding the proceeding as against them. On 

November 30, 1971, respondents Barclay and Rittenhouse Investments, Inc., 

submitted for filing in the record, under section 0.4(b) of the Rules of 

Practice (17 CFR 0.4(b)), a stipulation in which they (1) admit the facts 

hereinafter set forth in paragraphs one and two of the Findings of Fact, (2) 

admit, for the purposes of this proceeding and for such purposes only, the facts 

hereinafter set forth in paragraph three of the Findings of Fact, (3) waive oral 

hearing and the report of the Hearing Examiner, and (4) consent to the entry of 

the order contained herein. 

FINDINGS OF FACT 

1. (a) Respondent Robert E. O'Grady, an individual whose address is 100 North 

La Salle Street, Fourth Floor, Chicago, Illinois 60602, is now, and was at all 

times material herein, a registered floor broker under the Commodity Exchange 

Act and a member of the Chicago Mercantile Exchange. 

(b) Respondent Carl D. Leaven, an individual whose address is 100 North La 

Salle Street, Fourth Floor, Chicago, Illinois 60602, is now, and was at all 
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times material herein, a registered floor broker under the Commodity Exchange 

Act and a member of the Chicago Mercantile Exchange. 

(c) Respondent Leonard B. Feldman, an individual whose address is 110 North 

Franklin Street, Room 421, Chicago, Illinois 60606, is now, and was at all times 

material herein, a registered floor broker under the Commodity Exchange Act, a 

member of the Chicago Mercantile Exchange, and a general partner in respondent 

Time Trading Co. 

(d) Respondent Donald T. Barclay, an individual whose address is 10615 South 

Seeley Street, Chicago, Illinois 60643, was at all times material herein, a 

registered floor broker under the 

Commodity Exchange Act, a member of the Chicago Mercantile Exchange, and 

president of respondent Rittenhouse Investments, Inc. Respondent Donald T. 

Barclay owns 58 percent of the outstanding capital stock of the respondent 

corporation. He is no longer a registrant under the Commodity Exchange Act. 

(e) Respondent Time Trading Co., a partnership whose address is 110 North 

Franklin Street, Chicago, Illinois 60606, is now, and was at all times material 

herein, a clearing member of the Chicago Mercantile Exchange and a registered 

futures commission merchant under the Commodity Exchange Act. 

(f) Respondent Rittenhouse Investments, Inc., a corporation whose address is 

10615 South Seeley Street, Chicago, Illinois 60643, was at all times material 

herein, a clearing member of the Chicago Mercantile Exchange, and is now, and 

was at all times material herein, a registered futures commission merchant under 

the Commodity Exchange Act. 

2. The Chicago Mercantile Exchange is now, and was at all times material 

herein, a duly designated contract market under the Commodity Exchange Act. The 

transactions referred to in the complaint relate to the purchase and sale of 

pork belly futures contracts on the exchange. Such contracts could have been 

used for hedging transactions in interstate commerce in pork bellies or the 

products or by-products thereof, or for determining the price basis of 

transactions in interstate commerce in pork bellies, or for delivering pork 

bellies sold, shipped, or received in interstate commerce. 

3. On December 15, 1969, the respondents entered into the transactions in 

pork belly futures specified in the tabulation below, which transactions were 

wash sales or were of the character of wash sales. In entering into the said 

transactions, the respondents acted pursuant to, and in accordance with, an 

understanding or arrangement that reciprocal and offsetting purchases and sales 

would be made at specified prices whereby a profit of $ 19,500.00 would be 

reported to respondent Barclay's account and a loss of the same amount would be 

reported to respondent Feldman's account. 

See original document-page 3 

Quantity Broker Buying (No. of (1970) Customer 

Broker Customer contracts) Future Price Selling Leaven Barclay 50 February $ 43.30 O'Grady Feldman 

O'Grady Barclay 50 March 42.70 Leaven Feldman 

O'Grady Feldman 50 February 43.95 Leaven Barclay 

Leaven Feldman 50 March 43.35 O'Grady Barclay 

CONCLUSIONS 

By reason of the facts set forth in the Findings of Fact, it is concluded 

that, as charged in the complaint, respondents Donald T. Barclay and Rittenhouse 

Investments, Inc., (1) entered into transactions which were, or were of the 

character of, wash sales or ficititious sales, in wilful violation of section 4c 

of the Commodity Exchange Act (7 U.S.C. 6c), and (2) executed purchaser and 
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sales of commodities for future delivery in a manner that was not open and 

competitive, in wilful violation of section 1.38 of the regulations (17 CFR 

1.38). 

The complainant states that the Commodity Exchange Authority has carefully 

considered the proposed order, and that the Authority believes the proposed 

sanctions are adequate and the prompt entry of such an order would constitute a 

satisfactory disposition of this case as to respondents Barclay and Rittenhouse 

Investments, Inc. The complainant states that the Commodity Exchange Authority 

has informed respondents Barclay and Rittenhouse Investments, Inc., of the 

Authority's position that if the respondent corporation should trade for its 

corporate account during the period of the denial of trading privileges to 

respondent Barclay and while he continues his present relationship with the 

respondent corporation, such trading would constitute a violation on the part of 

respondent Barclay of the order denying him trading privileges. The complainant 

recommends that the stipulation be accepted and the proposed order be issued. 

It is concluded that the complainant's recommendation should be adopted. 

ORDER 

Effective upon the date of service of this order upon respondents Donald T. 

Barclay and Rittenhouse Investments, Inc., they shall cease and desist from: (1) 

entering into, or offering to enter into, any futures transaction subject to the 

Commodity Exchange Act if such transaction is, is of the character of, or is 

commonly known to the trade as, a "wash sale"; and (2) executing any futures 

transaction subject to the Commodity Exchange Act if such transaction is not 

executed openly and competitively in accordance with section 1.38 of the 

regulations issued under the Commodity Exchange Act (17 CFR 1.38). 

Effective on the thirtieth day after the date of issuance of this order, 

respondent Donald T. Barclay is prohibited from trading on or subject to the 

rules of any contract market for a period of 

ten days, and all contract markets shall refuse all trading privileges to him 

during this period, such prohibition and refusal to apply to all trading done 

and all positions held by him, directly or indirectly. 

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