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Commodity Futures Trading Commission 

CEA CASES 

NAME: THOMAS C. WILLIS 

CITATION: 34 Agric. Dec. 577 

DOCKET NUMBER: 237 

DATE: APRIL 9, 1975 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 16,381) 

In re THOMAS C. WILLIS. CEA Docket No. 237. Decided April 9, 1975. 

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

with regulations -- Orders -- offsetting 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 offsetting 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, Thomas C. Willis, 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 dates the respondent 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 Thomas C. Willis, whose principal place of business is at 175 

West Jackson Boulevard, Chicago, Illinois 60604, 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, a duly designated 

contract market under the Commodity Exchange Act. 
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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 Willis 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 Thomas C. Willis

Miller-Lane & Co.

Customer 

Date Quantity n1 Future Commodity Price Buying Selling 

7/ 2/73 5 March Corn 203 59093 63062 

7/ 3/73 5 December Corn 202 3/4 61009 80006 

7/ 5/73 10 July Corn 220 28001 10452 

5 December Corn 192 3/4 38034 25025 

5 December Corn 194 44020 20014 

5 December Corn 200 20014 44020 

7/ 6/73 2 September Corn 202 1/2 54062 11025 

3 September Corn 202 1/2 54062 25017 

1 December Corn 193 5/8 80006 44020 

5 December Corn 194 42030 44042 

4 December Corn 194 7/8 80006 59158 
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 Miller-Lane & Co.

 Customer 

Date Quantity n1 Future Commodity Price Buying Selling 

2 December Corn 194 7/8 59000 59158 

7/ 9/73 5 March Wheat 260 1/4 60092 30072 

5 March Wheat 260 1/4 60092 30072 

5 December Corn 196 5/8 59126 10050 

10 December Corn 196 3/4 44020 28001 

7/10/73 5 March Corn 194 1/2 59126 60065 

1 December Corn 192 33099 18034 

2 December Corn 192 1/2 59093 80006 

1 December Corn 193 7/8 42060 80006 

7/11/73 2 March Corn 201 1/8 10514 59126 

1 December Corn 200 1/8 60096 10312 

10 December Corn 203 25072 62014 

5 December Corn 203 25043 59078 

2 December Corn 203 25030 59078 

3 December Corn 203 25032 59078 

7/12/73 10 March Corn 214 28001 27006 

2 September Corn 217 3/4 00222 37016 

2 September Corn 217 3/4 00222 37018 

1 December Corn 206 1/2 80006 26042 

5 December Corn 209 1/4 25090 30012 

1 December Corn 209 1/2 29011 61010 

4 December Corn 211 28040 44020 

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 

7/16/73 3 March Wheat 276 1/2 33003 54023 

1 March Wheat 278 1/4 42114 80018 

5 December Wheat 279 20658 59090 

5 December Wheat 282 3/4 50951 60089 

7/17/73 5 December Wheat 272 1/2 42116 18035 

1 December Wheat 275 62036 20658 

7/18/73 5 September Corn 220 3/4 60092 20019 

3 December Corn 213 1/2 18075 80006 

1 December Corn 215 1/2 60096 80006 

10 December Corn 215 1/2 63062 62014 

5 December Corn 215 1/2 60073 42114 

2 December Corn 216 63084 62012 

5 December Corn 216 63070 18075 

7/20/73 5 September Corn 246 7/8 95011 28040 

10 December Corn 232 1/2 95001 59134 

5 December Corn 233 20019 26044 

1 March Corn 229 1/2 80009 25026 

n1 Quantities are in '000's of bushels. 

CONCLUSIONS

By reason of the facts set forth above, Thomas C. Willis 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 
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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 respondent Thomas C. 

Willis, 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 Thomas C. Willis as floor broker is hereby 

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

(b) Respondent Thomas C. Willis 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 the respondent, 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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