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Commodity Futures Trading Commission 

CEA CASES 

NAME: ROY D. SIMMONS 

CITATION: 27 Agric. Dec. 48 

DOCKET NUMBER: 149 

DATE: JANUARY 24, 1968 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 11,580) 

In re ROY D. SIMMONS. CEA Docket No. 149. Decided January 24, 1968. 

Position limit -- Denial of trading privileges -- Suspension of registration 

-- Stipulation

Respondent consented to the issuance of an order suspending his registration 

as a floor broker under the act for a period of 15 days and directing all 

contract markets to refuse all trading privileges to him during such period for 

his violations of the act in exceeding the maximum speculative position limit in 

potato futures on the New York Mercantile Exchange. 

Earl L. Saunders for Commodity Exchange Authority. 

Max Chill, of Max and Herman Chill, Chicago, Ill., for respondent. 

Decision by Thomas J. Flavin, Judicial Officer

PRELIMINARY STATEMENT

This is a proceeding under the Commodity Exchange Act (7 U.S.C. Chapter 1), 

in which the respondent, a trader in commodity futures and a registered floor 

broker under the act, is charged with exceeding the maximum speculative position 

limit in potato futures in violation of section 4a of the act (7 U.S.C. 6a) and 

the order of the Commodity Exchange Commission (17 CFR 150.10). 

No hearing has been held with respect to this proceeding. On January 23, 

1968, the respondent submitted a stipulation under section 0.4(b) of the rules 

of practice (17 CFR 0.4(b)), in which he withdraws his answer previously filed, 

admits, for the purposes of this proceeding and for such purposes only, the 

facts hereinafter set forth, waives hearing on the charges, and consents to the 

entry of the order contained herein. 

FINDINGS OF FACT

1. Respondent Roy D. Simmons, an individual whose business address is Room 

2118, 141 West Jackson Boulevard, Chicago, 

Illinois, is now, and was at all times material herein, a member of the New York 

Mercantile Exchange and a registered floor broker under the Commodity Exchange 

Act. 

2. The New York Mercantile Exchange, hereinafter called the exchange, is now, 

and was at all times material herein, a duly designated contract market under 

the Commodity Exchange Act. 

3. On the dates specified in the table below, the respondent made speculative 

transactions and held or controlled net short speculative positions in the May 

1968 potato future on the exchange as follows: 

Transactions Net Short 
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Date Purchases Sales Speculative Position

1967 (In Carlots) (In Carlots) 

September 11 24 151

12 -- 151

13 10 161

14 -- 161

15 10 171

18 10 181

19 41 140

4. On February 17, 1967, the respondent bought 30 and sold 60 carlots of May 

1967 potato futures on the exchange, resulting in his having a net short 

speculative position of 160 carlots of such futures. In a letter dated February 

23, 1967, to the Chicago office of the Commodity Exchange Authority, the 

respondent stated, "I am sorry to report that on February 17, 1967, I over 

traded the May option of potatoes by ten (10) cars." In a letter dated March 1, 

1967, the Acting Administrator of the Commodity Exchange Authority wrote to the 

respondent as follows: 

Our Chicago office reported that you held a short speculative position of 160 

carlots in the May potato future on February 17, 1967, which was in excess of 

the limit. You acknowledged this in your letter to Mr. Harper of February 23. 

Also, you reduced this position to within the limit on February 20. 

We know that you are well aware of the speculative limits in force on 

regulated commodities. Therefore, you should take every precaution to avoid 

trading or holding positions in excess of the limits. 

Holding speculative positions or trading in excess of the limits in any 

regulated commodity on which limits have been established by the Commodity 

Exchange Commission is a 

violation of the Commodity Exchange Act. Any further violation could result in 

action intended to deny you trading privileges on all contract markets. 

5. On July 30, 1962, a complaint was issued in CEA Docket No. 108, charging 

that the respondent exceeded the speculative limits on daily trading and 

positions in eggs for future delivery on the Chicago Mercantile Exchange during 

the period from January 2 through January 11, 1962, and that the respondent 

filed false reports covering his trading and positions. On August 30, 1962, in 

respect to such charges, the respondent submitted a stipulation in which he 

admitted the factual allegations in the complaint and consented to an order 

suspending his registration as a floor broker for a period of 30 days and 

directing all contract markets to refuse all trading privileges to him for a 

period co-extensive with the suspension of his floor broker registration. Such 

an order was issued by the Judicial Officer on August 31, 1962. 

CONCLUSIONS

The facts admitted by the respondent are identical to the facts alleged 

against him in the complaint, and these have been adopted as the Findings of 

Fact in this proceeding. By reason of these findings, it is concluded that, as 

charged in the complaint, the respondent traded in May 1968 potato futures on 

the exchange in amounts which resulted in net positions in excess of the maximum 

permissible quantity of 150 carlots, in wilful violation of section 4a of the 

Commodity Exchange Act, and the order of the Commodity Exchange Commission 

establishing limits on positions and trading in potato futures (7 U.S.C. 6a; 17 

CFR 150.10). 

The complainant states that the administrative officials of the Commodity 

Exchange Authority have carefully considered the proposed stipulation and order, 

and that they believe that the proposed sanctions are adequate and that the 

prompt entry, without further proceedings, of the order to which the respondent 

has consented will constitute a satisfactory disposition of this case, serve the 

public interest, and effectuate the purposes of the Commodity Exchange Act. The 
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complainant, therefore, recommends that the stipulation and waiver submitted by 

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

concluded. 

ORDER

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

registration of respondent Roy D. Simmons as floor broker under the Commodity 

Exchange Act is suspended for a period of fifteen (15) days and all contract 

markets shall refuse all trading privileges to respondent Roy D. Simmons during 

this period, such refusal to apply to all trading done and all positions held by 

him, directly or indirectly. 

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

and upon each contract market. 

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