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Commodity Futures Trading Commission 

CEA CASES 

NAME: THE NEW YORK MERCANTILE EXCHANGE 

DOCKET NUMBER: STIPULATION 1 

DATE: JULY 15, 1971 

DOCUMENT TYPE: STIPULATION OF COMPLIANCE 

NOTE: THIS STIPULATION WAS WITH THE COMMODITY EXCHANGE COMMISSION. ALL THE OTHER 

STIPULATIONS WERE WITH THE COMMODITY EXCHANGE AUTHORITY. 

THE UNITED STATES OF AMERICA 

BEFORE THE COMMODITY EXCHANGE COMMISSION 

In re: The New York Mercantile Exchange 

Stipulation of Compliance Before the Commodity Exchange Commission No: 1 

The Commodity Exchange Commission has reason to believe that the New York 

Mercantile Exchange, a designated contract market under the Commodity Exchange 

Act, has violated the provisions of the Commodity Exchange Act (7 U.S.C. Chapter 

1) and the regulations of the Secretary of Agriculture promulgated thereunder 

(17 CFR, Chapter 1). 

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

New York Mercantile Exchange is desirous of disposing of this matter by entering 

into a stipulation of compliance as authorized by Section 0.54(a) of the Rules 

of Practice under the Commodity Exchange Act (17 CFR, Part 0). Therefore, the 

said New York Mercantile Exchange Stipulates the following facts are true: 

(1) The New York Mercantile Exchange is now and was at all times material 

herein a corporation organized and existing under the laws of the State of New 

York, with offices at 6 Harrison Street, New York, New York 10013. 

(2) The New York Mercantile Exchange is now and was at all times material 

herein duly designated as a contract market for Irish potatoes under the 

Commodity Exchange Act. 

(3) On May 8, 1970, the New York Mercantile Exchange knowingly permitted 

certain of its members to enter into 42 contracts of May 1970 Maine potato 

futures after the time for trading in that future had ended, and in a manner not 

in accordance with its rules governing trading in Maine potato futures. 

(4) On May 8, 1970, the New York Mercantile Exchange failed to require 

certain of its members to comply with its rules and other requirements 

concerning the recording and reporting of transactions in the May 1970 Maine 

potato future with the result that on the next business day May 11, 1970, the 

exchange was unable to report to the Commodity Exchange Authority open contract 

figures for such future in the form and manner approved by the Act 

Administrator. Instead, on the morning of May 11, 19.70, the exchange advised 

the Commodity Exchange Authority that according to its records there were 1304 

open contracts in such future but that adjustments in that total would be 

necessary. Thereafter, during that day, the exchange furnished various lesser 

totals to the Commodity Exchange Authority, finally revising the open contract 

figure to 188 contracts. 

(5) Previous failure of the New York Mercantile Exchange to enforce its 

trading rules and recordkeeping requirements were called to, the attention of 

the President and Board of Governors of the New York Mercantile Exchange by 
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representatives of the Commodity Exchange Authority at a meeting of the Exchange 

Board of Governors held on January 23, 1968. 

The Commodity Exchange Authority has advised the New York Mercantile Exchange 

that its failure to enforce its trading rules as described in paragraph (3) 

above was in violation of 

Section 5a(8) of the Commodity Exchange Act and its failure to enfore its 

recordkeeping and reporting requirements as described in paragraph (4) above was 

in violation of Sections 5(b) and 5a(8) of the said Act. 

The New York Mercantile Exchange agrees to desist from such acts and 

practices in the future. It further understands and agrees that this stipulation 

is admissible as evidence of such acts and practices in any future proceeding 

based upon acts or practices in addition to those referred to herein which may 

be brought by the Commodity Exchange Commission against the exchange under the 

provisions of the said Act. 

The New York Mercantile Exchange also understands that it is the practice of 

the Commodity Exchange Authority to issue press releases on stipulations of 

compliance and to make them a matter of public record. 

Done at New York, New York this 15 day of July, 1971. 

New York Mercantile Exchange 

[SEE SIGNATURE IN ORIGINAL] 

Chairman of Board 

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