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Commodity Futures Trading Commission 

CEA CASES 

NAME: JACK W. SOMMERS 

DOCKET NUMBER: STIPULATION 43 

DATE: OCTOBER 16, 1959 

DOCUMENT TYPE: STIPULATION OF COMPLIANCE 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Jack W. Sommers 

Stipulation of Compliance 

No. 43 

Jack W. Sommers, an individual whose address is No. 2 Broadway, New York 4, 

New York, is a member of the New York Produce Exchange and a registered floor 

broken under the Commodity Exchange Act. He has been advised by the Commodity 

Exchange Authority of an investigation made by it of certain transactions in 

cottonseed oil futures executed by him on the New York Produce Exchange on 

December 9, 1958. The facts concerning these transactions are as follows: 

On or about December 9, 1958, Albert E. Fagan, a partner in the firm of Fagan 

and Company, instructed Jack W. Sommers to make two so-called "switch" trades 

effecting, (1) the purchase of 20 contracts of March cottonseed oil futures for 

the account of Fagan and Company and the sale of 20 contracts of May cottonseed 

oil futures for the account of one Lou Holts, and (2) the sale of 20 contracts 

of March cottonseed oil futures for the account of Fagan and Company and the 

purchase of 20 contracts of May cottonseed oil futures for the account of the 

said Lou Holts. Both transactions were to be executed at a premium of two 

points for the May contracts over the March contracts. Also, transaction (1) 

was to be made at the high price for the day, and transaction 

(2) was to be made at the low price for the day. The orders were executed by 

Jack W. Sommers as follows: 

Bought Sold 

Clearing Price and Clearing Customer Broker Member Quantity Member Broker Customer

Fagan & Company Sommers Coleman & Co. 20 Mar. @ 1303 Orvis Preston O'Cone Orvis 20 May @ 1305 McFadden Sommers Holts 

Preston Orvis 20 Mar. @ 1283 Coleman & Co. Sommers Fagan & 

Company 

Holts Sommers McFadden 20 May @ 1285 Orvis O'Cone 

In the execution of these transactions the said Jack W. Sommers arranged with 

Carl E. Preston, a floor broker on the New York Produce Exchange, to take the 

opposite side of the transactions on the basis set forth above, and the trades 

were then made as described. 

The Commodity Exchange Authority has advised Jack W. Sommers that in its 

opinion the transactions above described are in violation of the Commodity 

Exchange Act and the regulations thereunder, particularly those portions 

relating to wash trades and the requirement that all trading be done openly and 

competitively. 

No complaint with respect to such violations has been issued and the said 

Jack W. Sommers is desirous of disposing of the matter by entering into a 
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stipulation of compliance, as authorized by section 0.4(a) of the Rules of 

Practice under the Commodity Exchange Act (17 CFR, 0.0-0.28). 

Therefore, Jack W. Sommers stipulates that the above statements regarding the 

transactions of December 9, 1958, are true, and agrees to desist from such 

practices in the future and to comply fully with the requirements of the 

Commodity Exchange Act and the regulations of the Secretary of Agriculture 

thereunder; and specifically to refrain from executing wash trades or trades 

which call for execution otherwise then by open and competitive means. 

Jack W. Sommers has been informed that the Commodity Exchange Authority may, 

in connection with its regulatory activities, publicize the facts concerning the 

transactions discussed herein in order that floor brokers, futures commission 

merchants and all other users of the futures markets may be advised of the views 

of the Commodity Exchange Authority regarding matters of the type covered 

herein. 

/s/ Jack W. Sommers 

Jack W. Sommers 

Witnessed by: 

/s/ Hugh A. Collins 

/s/ T. Reed McMinn 

(Signed in New York, New York, on October 16, 1959) 

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