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Commodity Futures Trading Commission 

CEA CASES 

NAME: MERRILL LYNCH, PIERCE, FENNER AND BEANE, AND WILLIAM MAHER 

DOCKET NUMBER: STIPULATION 29 

DATE: SEPTEMBER 13, 1955 

DOCUMENT TYPE: STIPULATION OF COMPLIANCE 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Merrill Lynch, Pierce, Fenner and Beane, and William Maher 

Stipulation of Compliance under the Commodity Exchange Act No. 29 

WHEREAS, the Secretary of Agriculture has reason to believe that Merrill 

Lynch, Pierce, Fenner and Beane, a partnership, and William Maher have violated 

the Commodity Exchange Act (7 U.S.C. 1-17a) and the rules and regulations 

thereunder (17 CFR, Chapter 1) by virtue of certain transactions involving the 

purchase and sale of soybean futures, and 

WHEREAS, no complaint with respect to such violations has been issued, and 

WHEREAS, section 0.4(a) of the rules of practice under the Commodity Exchange 

Act (17 CFR 0.4(a)) provides that at any time prior to the issuance of a 

complaint in any proceeding, the Secretary of Agriculture may, in his 

discretion, enter into a stipulation with a prospective respondent whereby the 

latter admits the material facts and agrees to discontinue the acts or practices 

which are intended to be set up as violative of the statute, and 

WHEREAS, the said Merrill Lynch, Pierce, Fenner and Beane and 

William Maher are desirous of disposing of this matter by entering into such a 

stipulation, 

NOW, THEREFORE, the said Merrill Lynch, Pierce, Fenner and Beane and William 

Maher hereby stipulate and represent that the following facts are true: 

1. Merrill Lynch, Pierce, Fenner and Beane, hereinafter called Merrill Lynch, 

is now and was at all times mentioned herein a partnership with an office and 

place of business at 141 West Jackson Boulevard; Chicago, Illinois. At all such 

times the said partnership was a registered futures commission merchant under 

the Commodity Exchange Act, and exercised membership trading privileges and 

clearing privileges on the Board of Trade of the City of Chicago, hereinafter 

called the Chicago Board of Trade, a duly designated contract market. 

2. William Maher, an individual whose address is 141 West Jackson Boulevard, 

Chicago, Illinois, is now and was at all times mentioned herein an employee of 

the said firm of Merrill Lynch. 

3. Section 1.38 of the rules and regulations under the Commodity Exchange Act 

(17 CFR, 1954 Supp., 1.38) provides as follows: 

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 
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market, during the regular hours prescribed by the contract market for trading 

in such commodity: Provided, however, That this requirement shall not apply to 

such transactions as are executed in accordance with written rules of the 

contract market which have been submitted to and not disapproved by the 

Secretary of Agriculture, specifically providing for the noncompetitive 

execution of such transactions. 

4. Regulation 1832A of the Chicago Board of Trade prohibits trading in 

soybean futures during the last seven days of a delivery month. Pursuant to the 

said regulation, trading in July 1955 soybean futures terminated at the close of 

business on July 20, 1955. 

5. On July 21, 1955, William Maher, acting on behalf of the said firm of 

Merrill Lynch, purchased 50,000 bushels of July 1955 soybean futures by direct 

and private negotiation with the seller, for which action Merrill Lynch accepts 

full responsibility. Such transaction was not within any of the exceptions 

specified in section 1.38 of the rules and regulations under the Commodity 

Exchange Act (17 CFR, 1954, Supp., 1.38), and was in violation of the said 

section and Act. 

In addition to admitting the foregoing facts, the said firm of Merrill Lynch 

and William Maher hereby agree to discontinue all such acts and practices and 

refrain from all other acts and practices which are in violation of the 

Commodity Exchange Act or the rules and regulations thereunder, and further 

specifically agree that this stipulation shall be admissible as evidence of acts 

and practices in violation of 

the Commodity Exchange Act and the rules and regulations thereunder in any 

subsequent proceeding brought against the said firm of Merrill Lynch and William 

Maher, or either of them, under the provisions of the said Act. 

Done at Chicago, Illinois 

this 13 day of Sept., 1955 

/s/ Merrill Lynch, Pierce, Fenner & Beane 

Merrill Lynch, Pierce, Fenner and Beane 

by /s/ Russell T. Stern, Partner 

/s/ William E. Maher 

William Maher 

Witnessed by: 

/s/ Mary S. Onnen 

/s/ Mary S. Onnen 

LOAD-DATE: June 16, 2008 
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