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Commodity Futures Trading Commission 

CEA CASES 

NAME: WILLIAM E. HENNER 

CITATION: 31 Agric. Dec. 382 

DOCKET NUMBER: 181 

DATE: MARCH 27, 1972 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 14,457) 

In re WILLIAM E. HENNER. CEA Docket No. 181. Decided March 27, 1972. 

Consent order

Respondent is ordered to cease and desist from making trades on or subject to 

the rules of a contract market other than by open and competitive methods. 

Richard W Davis for Commodity Exchange Authority. 

Harry H. Fortes, Chicago, Ill., for respondent. 

Decision by Thomas J. Flavin, Judicial Officer

PRELIMINARY STATEMENT

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

U.S.C. Chapter 1, 1970), instituted by a complaint and notice of hearing issued 

on August 24, 1971 under section 6(c) of the said Act (7 U.S.C. 13b). The 

respondent is 

charged with violating sections 4b, 4c and 4g of the said Act (7 U.S.C. 6b, 6c 

and 6g) and sections 1.35 and 1.38 of the regulations thereunder (17 CFR 1.35 

and 1.38). 

No hearing has been held in this proceeding. On March 22, 1972, the 

respondent filed a stipulation under section 0.4(b) of the rules of practice (17 

CFR 0.4(b)), in which he (1) withdrew the answer previously filed by him, (2) 

admits the facts hereinafter set forth in paragraphs 1 through 3 of the Findings 

of Fact, (3) admits, for the purposes of this proceeding and for such purposes 

only, the remaining facts set forth in the Findings of Fact, and (4) waives the 

report of the Referee and consents to the entry of the order contained herein. 

FINDINGS OF FACT

1. The respondent, William E. Henner, an individual, whose business address 

is 141 West Jackson Boulevard, Chicago, Illinois 60604, 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, hereinafter referred to as 

the exchange. 

2. The exchange is now, and was at all times material herein, a duly 

designated contract market under the Commodity Exchange Act. 

3. The transactions referred to in this complaint relate to the purchase and 

sale of July 1969 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. 
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4. On February 14, 1969, the respondent, acting as floor trader for his own 

account on the exchange, sold two July 1969 pork belly futures contracts to Alan 

L. Freeman, who was acting in the capacity of floor broker for the account of a 

customer. Thereafter, on the same day, in order to aid the said Freeman to fill 

a customer's sell order, the respondent entered into a non-competitive 

arrangement with Freeman whereby the respondent gave to Freeman one of such 

sales which the respondent had previously made for his own account to Freeman. 

CONCLUSIONS

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

that the respondent has made a trade on or subject to the rules of a contract 

market otherwise than by open and competitive methods, in violation of section 

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

complainant states that the administrative officials of the Commodity Exchange 

Authority have carefully considered the stipulation and the terms of the 

proposed order and they believe that the entry of such an order without further 

proceedings would constitute a satisfactory disposition of this case, serve the 

public interest and effectuate the purposes of the Commodity Exchange Act. The 

complainant, therefore, recommends that the stipulation be accepted and the 

proposed order be issued, terminating this proceeding. It is concluded that the 

complainant's recommendation should be adopted. 

ORDER

Effective immediately, respondent William E. Henner shall cease and desist 

from making trades on or subject to the rules of a contract market otherwise 

than by open and competitive methods. 

A copy of this Decision and Order shall be served on each of the parties and 

on each contract market. 

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