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Commodity Futures Trading Commission 

CEA CASES 

NAME: ROBERT P. TALLIAN 

CITATION: 34 Agric. Dec. 572 

DOCKET NUMBER: 236 

DATE: APRIL 9, 1975 

DOCUMENT TYPE: DECISION AND ORDER 

LIST OF DECISIONS REPORTED 

APRIL 1975 

(No. 16,380) 

In re ROBERT P. TALLIAN. CEA Docket No. 236. Decided April 9, 1975. 

Floor broker -- Orders and trading cards -- failure to execute in accordance 

with regulations -- Orders -- ofsetting of, in violation of Act -- Sanction

The stipulation of respondent has been accepted and the order herein is 

issued against him for violations of the Act in connection with his operations 

as a floor broker in the execution of orders and trading cards and the ofsetting 

of orders as found herein. Respondent's registration as a floor broker under 

the Act is suspended for a period of 30 days and respondent is denied trading 

privileges on all contract markets for a period of 30 days. 

Michael D. Weiner, for complainant. 

James L. Fox, Chicago, Ill., for respondent. 

Decision by John A. Campbell, Administrative Law Judge.

DECISION AND ORDER 

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, alleging 

that the respondent, Robert P. Tallian, is now and was at all times material 

herein a registered floor broker under the Commodity Exchange Act and a clearing 

member of the MidAmerica Commodity Exchange. The Complaint charges that on 

various specified dates respondent Tallian unlawfully offset customers' buy and 

sell orders. Such acts were alleged to have been willful and in violation of 

section 4b(D) of the Commodity Exchange Act (7 U.S.C. 6b(D)) and 

section 1.39 of the regulations issued thereunder (17 CFR 1.39). 

Prior to hearing the respondent agreed to a stipulation under section 0.4(b) 

of the Rules of Practice (17 CFR 0.4(b)) in which he (1) admits the facts 

hereunder as set forth in paragraphs 1 through 5 of the Findings of Fact, (2) 

waives oral hearing on the charges in the Complaint, and (3) consents to the 

entry, without further proceedings, of a Decision and Order containing the facts 

admitted in such stipulation as the Findings of Fact for the purposes of this 

proceeding only, conclusions of law based on such findings, and the Order 

contained herein. 

FINDINGS OF FACT

1. Respondent Robert P. Tallian, whose principal place of business is at 175 

West Jackson Boulevard, Chicago, Illinois 60604, is now, and was at all times 
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material herein, a registered floor broker under the Commodity Exchange Act, and 

a clearing member of the MidAmerica Commodity Exchange, a duly designated 

contract market under the Commodity Exchange Act. 

2. All futures transactions referred to herein relate to wheat and corn 

futures contracts executed in July 1973 by the respondent in his capacity as 

floor broker on the MidAmerica Commodity Exchange for customers of Miller-Lane & 

Company, a registered futures commission merchant under the Commodity Exchange 

Act and a clearing member of the MidAmerica Commodity Exchange. Such contracts 

for future delivery are or may be used for (a) hedging any transaction in 

interstate commerce in such commodity or the products or byproducts thereof, or 

(b) determining the price basis of any transaction in interstate commerce in 

such commodity, or (c) delivering any such commodity sold, shipped, or received 

in interstate commerce for the fulfillment thereof. 

3. Section 4b(D) of the Commodity Exchange Act (7 U.S.C. 6b(D)), in pertinent 

part, prohibits the filling of orders on any contract market "by offset against 

the order or orders of any other person." 

Section 1.39 of the regulations issued pursuant to the Commodity Exchange Act 

(17 CFR 1.39) requires that: 

A member of a contract market who shall have in hand at the same time both 

buying and selling orders of different principals for the same commodity for 

future delivery in the same delivery month may execute such orders for and 

directly between such principals at the market price, if, 

in conformity with written rules of such contract market . . . . 

(3) Such member executes such orders in the presence of an official 

representative of such contract market designated to observe such transactions 

and, by appropriate descriptive words or symbol, clearly identifies all such 

transactions on his trading card or other similar record, made at the time of 

execution, and notes thereon the exact time of execution and promptly presents 

said record to such official representative for verification and initialing. 

4. Rule 406 of the MidAmerica Commodity Exchange, in conformity with Section 

1.39 of the regulations issued pursuant to the Commodity Exchange Act (17 CFR 

1.39), permits the execution of simultaneous buying and selling orders from 

different principals for the same commodity in the same delivery month provided 

that the execution is in the presence of a designated official who shall verify 

and initial the trading card or other record, and the transactions are clearly 

identified, and the time of execution is noted. 

5. On various dates, specified below, respondent Tallian unlawfully offset 

customers' buy and sell orders. He had in hand at the same time both buying and 

selling orders of different principals for the same commodity for future 

delivery in the same delivery month and failed to execute such orders in the 

presence of a designated Exchange official, failed to have such official verify 

and initial respondent's trading card or other record, and failed to identify 

and note on such record the time of execution. 

Offset Trades Made By Robert P. Tallian

Miller-Lane & Co.

Customer 

Date Quantity n1 Future Commodity Price Buying Selling 

7/ 2/73 5 December Wheat 277 50951 62014 

7/ 3/73 5 December Wheat 282 25004 30036 

7/ 5/73 5 December Wheat 280 30012 25046 

15 December Wheat 283 7/8 65004 59158 

5 December Wheat 283 7/8 65004 30012 

7/ 6/73 1 December Wheat 268 3/8 15006 00222 

1 December Wheat 268 3/8 15003 00222 

10 December Corn 194 1/2 59134 44034 

7/ 9/73 4 March Wheat 266 10452 60040 
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 Miller-Lane & Co.

 Customer 

Date Quantity n1 Future Commodity Price Buying Selling 

5 March Wheat 266 10452 60092 

1 March Wheat 266 1/8 10452 10050 

7/10/73 1 March Wheat 256 10050 80018 

2 December Wheat 257 59090 65004 

7/11/73 1 December Wheat 266 61002 12002 

1 March Wheat 263 1/4 44005 80018 

5 July Wheat 273 3/4 60078 28040 

7/12/73 5 September Wheat 278 54062 30072 

n1 Quantities are in '000's of bushels. 

 

See original document-page 3 

Miller-Lane & Co.

Customer 

Date Quantity n1 Future Commodity Price Buying Selling 

7/12/73 5 December Wheat 277 1/8 65002 18052 

2 December Wheat 277 1/2 65002 62036 

7/13/73 2 March Corn 211 37004 59126 

1 September Corn 219 20040 10421 

5 September Corn 219 20040 31012 

3 September Corn 221 56013 55004 

2 September Corn 221 56013 37020 

5 December Corn 207 1/2 60062 44020 

3 December Corn 209 3/8 80006 63062 

7/16/73 10 July Corn 246 28040 00222 

5 September Corn 229 3/8 36010 63074 

2 December Corn 214 1/2 44030 28099 

2 December Corn 214 1/2 44028 28099 

5 December Corn 215 38078 61002 

2 December Corn 217 38066 44050 

7/17/73 5 May Corn 219 26042 63062 

5 September Corn 224 42030 60090 

5 December Corn 211 7/8 59078 29034 

1 December Corn 212 59078 61010 

1 December Corn 212 59078 61010 

2 December Corn 212 1/2 44030 18034 

10 December Corn 212 1/2 44007 54023 

5 December Corn 215 61002 63062 

1 December Corn 215 61002 63084 

5 December Corn 215 1/2 38013 59078 

5 December Corn 215 1/2 61008 26016 

3 December Corn 215 1/2 61018 26016 

1 December Corn 216 10312 25072 

3 December Corn 216 1/4 27026 63062 

7/18/73 1 December Wheat 270 10421 11460 

2 December Wheat 277 80036 62036 

7/20/73 5 December Wheat 292 1/4 18052 00222 

5 December Wheat 294 1/2 18064 00207 

5 December Wheat 300 3/4 25072 18064 

5 December Wheat 300 3/4 65003 18064 

10 December Wheat 300 3/4 65005 00203 

5 December Wheat 300 3/4 65005 59090 

5 December Wheat 300 3/4 65005 59130 

5 December Wheat 300 3/4 65006 28040 

10 December Wheat 300 3/4 65006 18089 

4 December Wheat 300 3/4 65006 18069 

1 December Wheat 300 3/4 65006 38017 

1 December Wheat 300 3/4 95006 64204 

4 December Wheat 300 3/4 95006 18035 

5 December Wheat 300 3/4 00207 18052 
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 Miller-Lane & Co.

 Customer 

Date Quantity n1 Future Commodity Price Buying Selling 

1 December Wheat 300 3/4 12002 80028 

4 December Wheat 297 50852 61004 

n1 Quantities are in '000's of bushels. 

 

CONCLUSIONS

By reasons of the facts set forth above, Robert P. Tallian has willfully 

violated section 4b(D) of the Commodity Exchange Act (7 U.S.C. 6b(D)) and 

section 1.39 of the regulations issued thereunder (17 CFR 1.39) by unlawfully 

offsetting customers' buy and sell orders. 

The complainant states that Administrative Officials of the Commodity 

Exchange Authority have carefully considered the stipulation submitted by the 

respondent. The Administrative Officials believe that the prompt entry of the 

proposed Order would constitute a satisfactory disposition of this case, serve 

the public interest, and effectuate the purposes of the Act. The complainant 

recommends, therefore, that the stipulation be accepted and the proposed Order 

be issued. 

ORDER

1. Effective upon the date of service of this Order upon the respondent 

Robert P. Tallian, the respondent shall cease and desist from unlawfully 

offsetting customers' buy and sell orders by failing to execute both buying and 

selling orders of different principals for the same commodity for future 

delivery in the same delivery month in the presence of a designated Exchange 

Official, by failing to have such official verify and initial respondent's 

trading card or other record, or by failing to identify and note on such record 

the time of execution. 

2. Effective on the twentieth day after the date of entry of this Order: 

(a) The registration of respondent Robert P. Tallian as floor broker is 

hereby suspended for a period of thirty (30) days, and 

(b) Respondent Robert P. Tallian is prohibited from trading on or subject to 

the rules of any contract market for a period of thirty (30) days, and all 

contract markets shall refuse all trading privileges to the respondent during 

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

positions held by respondent Tallian directly or indirectly. 

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

and on each contract market. 

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