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Commodity Futures Trading Commission 

CEA CASES 

NAME: FREDERICK G. UHLMANN, JOHN F. BENJAMIN, AND ROBERT L. DAVID 

CITATION: 20 Agric. Dec. 176 

DOCKET NUMBER: 97 

DATE: MARCH 16, 1961 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 7040) 

In re FREDERICK G. UHLMANN, JOHN F. BENJAMIN, AND ROBERT L. DAVID. CEA Docket 

No. 97. Decided March 16, 1961. 

Denial of Trading Privileges -- Consent Order

The respondents consented to an order requiring all contract markets to 

refuse trading privileges to respondents for a 10-day period. 

Mr. Benj. M. Holstein, for Commodity Exchange Authority. Mr. Leo F. Tierney, of 

Chicago, Illinois, for respondents. 

Decision by Thomas J. Flavin, Judicial Officer

PRELIMINARY STATEMENT

The complaint in this administrative proceeding, issued January 13, 1961, 

charges the respondents, members of the Chicago Board of Trade, with making 

transactions in wheat futures on a contract market otherwise than by open and 

competitive methods, in willful violation of section 1.38 of the regulations 

under the act (17 CFR 1.38). 

No hearing has been held. On March 8, 1961, the respondents, by way of 

answer to the complaint, filed a document under section 0.4(b) of the rules of 

practice (17 CFR 0.4(b)), in which they admit the facts hereinafter set forth, 

waive hearing on the charges, and consent to the entry of the order contained 

herein. The respondents also represent that they do not ordinarily execute 

trades personally, and that each of them was under an unusual strain because of 

the fact that the day on which the transactions occurred was the final day of 

trading in the May 1960 future. 

FINDINGS OF FACT

1. The Board of Trade of the City of Chicago, hereinafter called the Chicago 

Board of Trade, is now and was at all times material herein a duly designated 

contract market under the Commodity Exchange Act. 

2. Respondent Frederick G. Uhlmann is now and was at all times material 

herein a member of the Chicago Board of Trade and a representative of the 

Uhlmann Grain Company, a registered futures commission merchant. 

3. Respondent John F. Benjamin was at all times material 

herein a registered floor broker under the Commodity Exchange Act, and is now 

and was at all such times a member of the Chicago Board of Trade. Respondent 

John F. Benjamin is not registered as a floor broker under the act for the 

calendar year of 1961. 

4. Respondent Robert L. David is now and was at all times material herein a 

member of the Chicago Board of Trade. 
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5. On May 19, 1960, respondent Frederick G. Uhlmann, in his capacity as a 

representative of the aforesaid Uhlmann Grain Company, had received and had in 

his possession an order to sell 25,000 bushels of May 1960 wheat futures on the 

Chicago Board of Trade for the account of a customer of the said Uhlmann Grain 

Company. Respondent Uhlmann filled the said order after the close of the 

trading session by means of direct and non-competitive negotiations with 

respondents John F. Benjamin and Robert L. David. Pursuant thereto, respondent 

Benjamin, also acting for the account of a customer of the said Uhlmann Grain 

Company, purchased 20,000 bushels of May 1960 wheat futures from respondent 

Frederick G. Uhlmann at $ 1.93 per bushel, and respondent Robert L. David 

purchased 5,000 bushels of such future for his own account from respondent 

Frederick G. Uhlmann at $ 1.93 per bushel. 

CONCLUSIONS

With exceptions not here pertinent, section 1.38 of the regulations under the 

Commodity Exchange Act (17 CFR 1.38) provides as follows: 

"Sec. 1.38 Execution of transactions -- (a) Competitive execution required; 

exceptions. All purchases and sales of any commodity for future delivery on or 

subject to the rules of a contract market shall be executed openly and 

competitively as to price by open outcry or posting of bids and offers or by 

other equally open and competitive methods, in the trading pit or ring or 

similar place provided by the contract market, during the regular hours 

prescribed by the contract market for trading in such commodity . . . ." 

A transaction made as a result of direct negotiations between seller and 

purchaser after the trading session has ended is clearly non-competitive and 

constitutes a willful violation of section 1.38 of the regulations. 

The complainant states that it has carefully considered the proposed 

stipulation and order, and it believes that the proposed denial of trading 

privileges would be adequate and that the prompt 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 act. The 

complainant therefore recommends that the stipulation and waiver submitted by 

the respondents be accepted and that the proposed order be issued. It is so 

concluded. 

ORDER

Effective 30 days after the entry of this order, all contract markets shall 

refuse all trading privileges to John F. Benjamin, Robert L. David, and 

Frederick G. Uhlmann for a period of 10 days, such refusal to apply to all 

trading done and all positions held by the said John F. Benjamin, Robert L. 

David, or Frederick G. Uhlmann, directly or indirectly. 

A copy of this decision and order shall be served on the respondents and on 

each contract market. 

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