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Commodity Futures Trading Commission 

CEA CASES 

NAME: ALEXANDER K. RUXTON 

CITATION: 18 Agric. Dec. 103 

DOCKET NUMBER: 85 

DATE: FEBRUARY 26, 1959 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 5787) 

In re ALEXANDER K. RUXTON. CEA Docket No. 85. Decided February 26, 1959. 

Denial of Trading Privileges -- Consent Order

Respondent admitted the jurisdictional facts, waived oral hearing, and 

consented to the issuance of an order directing all contract markets to refuse 

him trading privileges through October 5, 1959. 

Mr. Benj. M. Holstein, for Commodity Erchange Authority. Mr. James J. Coughlin,

of Chicago, Illinois, for respondent. 

Decision by Thomas J. Flavin, Judicial Officer

PRELIMINARY STATEMENT

This is a disciplinary proceeding under the Commodity Exchange Act (7 U.S.C. 

1952 ed., Chapter 1), instituted by a complaint and notice of hearing issued 

under section 6(b) of the act (7 U.S.C. 1952 ed., § 9) by the Assistant 

Secretary of Agriculture on July 11, 1958. 

The complaint describes certain transactions in wheat futures executed by the 

respondent on the Chicago Board of Trade in April 1957, while acting as floor 

broker pursuant to orders received from various principals, and charges that the 

respondent took the opposite side of certain of such orders without the prior 

knowledge or consent of the principals (Complaint, paragraphs III, IV); that he 

executed other orders by means of "cross trades" or "accommodation trades" 

(Complaint, paragraph V); and that he filled an order to purchase on behalf of 

one principal by offsetting the same against a similar order to sell on behalf 

of another principal (Complaint, paragraph VI). It is charged that the 

respondent thereby violated sections 4b(D) and 4c(A) of the Commodity Exchange 

Act (7 U.S.C. 1952 ed., §§ 6b(D), 6c(A)), which specifically prohibit 

transactions of the type described; and that he failed to execute futures trades 

openly and competitively by open outcry in the trading pit of the Chicago Board 

of Trade, in wilful violation of section 1.38 of the rules and regulations (17 

CFR 1.38). 

No hearing has been held. On February 20, 1959, the respondent withdrew the 

answer which he had previously filed and submitted a stipulation under section 

0.4(b) of the rules of practice (17 CFR 0.4(b)), in which he admits the facts 

hereinafter set forth, waives hearing, and consents to the entry of the order 

contained herein. 

FINDINGS OF FACT

1. The respondent, Alexander K. Ruxton, an individual whose business address 

is Room 1480, Board of Trade Building, 141 West Jackson Boulevard, Chicago 4, 

Illinois, is now and was at all times material herein a member of the Board of 

Trade of the City of Chicago, hereinafter called the Chicago Board of Trade, a 

duly designated contract market under the Commodity Exchange Act. 
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2. During the calendar years 1957 and 1958, the respondent was a registered 

floor broker under the Commodity Exchange Act. The respondent did not apply for 

registration as a floor broker under the act for the calendar year 1959, and is 

not presently so registered. 

3. During the period from April 22, 1957, through April 26, 1957, the 

respondent, in his capacity as a registered floor broker, executed transactions 

in wheat futures on the Chicago Board of Trade. Such transactions were capable 

of being used for hedging 

transactions in interstate commerce in wheat or the products or byproducts 

thereof, or determining the price basis of transactions in interstate commerce 

in wheat, or delivering wheat sold, shipped, or received in interstate commerce. 

CONCLUSIONS

The rules of practice under the Commodity Exchange Act provide that the 

Secretary, in his discretion, may allow a respondent to consent to an order at 

any time prior to hearing, provided the respondent submits for filing in the 

record "a stipulation or statement in which he admits at least those facts 

necessary to the Secretary's jurisdiction and agrees that an order may be 

entered against him" (17 CFR 0.4(b)). The facts admitted by the respondent have 

been adopted as the findings of fact in this proceeding. Such facts are 

sufficient to subject the respondent to the jurisdiction of the Secretary of 

Agriculture. 

The complainant has filed a recommendation which recites that it has 

carefully considered the stipulation and waiver submitted by the respondent, and 

the terms of the order to which he proposes to consent. It is the opinion of 

the complainant that the proposed sanction would be adequate, and that the 

prompt entry of such an order without further proceedings would constitute a 

satisfactory disposition of this case, serve the public interest, and effect the 

purposes of the Commodity Exchange Act. The complainant recommends that the 

stipulation and waiver be accepted and that the proposed order be issued 

terminating the proceeding. It is so concluded. 

ORDER

Effective ten days after the date of entry of this order all contract markets 

are hereby directed to refuse all trading privileges to Alexander K. Ruxton for 

the period from such effective date through October 5, 1959, such refusal to 

apply to all trading done and positions held by the respondent, directly or 

indirectly, either for his own account or for the account of any other person. 

A copy of this decision and order shall be served upon the respondent and 

upon each contract market. 

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