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Commodity Futures Trading Commission 

CEA CASES 

NAME: ROY D. SIMMONS 

DOCKET NUMBER: 149 

DATE: NOVEMBER 1, 1967 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Roy D. Simmons, Respondent 

CEA Docket No. 149 

Complaint and Notice of Hearing Under Section 6(b) of the Commodity Exchange 

Act 

There is reason to believe that the respondent, Roy D. Simmons, has violated 

the provisions of the Commodity Exchange Act (7 U.S.C. et seq.), and the rules 

and regulations made pursuant to its requirements (17 CFR, Part I), and in 

accordance with the provisions of section 6(b) of the said act (7 U.S.C. 9), 

this complaint and notice of hearing is issued stating the charges in that 

respect as follows: 

I 

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 to this complaint, a member of the New York Mercantile Exchange and a 

registered floor broker under the Commodity Exchange Act. 

II 

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

and was at all times material to this complaint, a duly designated contract 

market under the Commodity Exchange Act. 

III 

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 

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 

IV 

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 overtraded 
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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. 

V 

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 coextensive with the suspension of his floor broker registration. Such an order 

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

VI 

By reason of the facts set forth in this complaint, the respondent knowingly 

and willfully violated section 4a of the Commodity 

Exchange Act (7 U.S.C. 6a) and the order of the Commodity Exchange Commission 

establishing limits on position and daily trading in potatoes for future 

delivery (17 CFR 150.10). 

WHEREFORE, it is hereby ordered that this complaint and notice of hearing be 

served upon the said respondent. The respondent will have twenty (20) days 

after the receipt of this complaint in which to file with the Hearing Clerk, 

United States Department of Agriculture, Washington, D. C. 20250, an answer with 

an original and three copies, fully and completely stating the nature of the 

defense and admitting or denying, specifically and in detail, each allegation of 

this complaint. Allegations not answered will be deemed admitted for the 

purpose of this proceeding. Failure to file an answer will constitute an 

admission of all the allegations of this complaint and a waiver of hearing. The 

filing of an answer in which all the material allegations of fact contained in 

the complaint are admitted likewise shall constitute a waiver of hearing unless 

a hearing is requested. The respondent is hereby notified that unless hearing 

is waived, a hearing will be held at 10:00 a.m., local time, on December 13, 

1967, in Chicago, Illinois, at a place therein to be specified later, before a 

referee designated to conduct such hearing. At such hearing, the respondent 

will have the right to appear and show cause, if any there be, why an order 

should not be made suspending or revoking the registration of the respondent as 

a floor broker, and directing that all contract markets refuse all trading 

privileges to the respondent for such period of time as may be determined. 
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It is ordered that this complaint and notice of hearing be served on the 

respondent at least twenty (20) days prior to the date set for hearing. 

Done at Washington, D. C. 

November 1, 1967 

[SEE SIGNATURE IN ORIGINAL] 

Assistant Secretary 

George L. Mehren 

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