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Commodity Futures Trading Commission 

CEA CASES 

NAME: ROY D. SIMMONS 

CITATION: 33 Agric. Dec. 896 

DOCKET NUMBER: 219 

DATE: JULY 3, 1974 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 15,920) 

In re ROY D. SIMMONS. CEA Docket No. 219. Decided July 3, 1974. 

Exceeding speculative trading limits -- Filing false and misleading reports -

- Sanction 

The stipulation of respondent has been accepted, and the order herein is 

issued accordingly against him for violating the Act in exceeding the 

speculative trading limits permitted under the Act and in the filing of false 

and misleading reports of transactions executed by him and the position held by 

him. Respondent shall cease and desist from such violations. And respondent is 

suspended as a registrant under the Act for a period of six (6) months and is 

prohibited from trading in commodities on or subject to the rules of any 

contract market for a period of six [6] months, as stated in the order herein. 

Herbert R. Bader, for complainant. 

Arthur A. Reiser, Jr., 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, "the 

Act" (7 U.S.C. § 1 et seq.), instituted by a Complaint and Notice of Hearing, 

alleging that the respondent, Roy D. Simmons, is now and was at all times 

material a registered floor broker under the Act and a member of the Chicago 

Mercantile Exchange, a duly designated contract market under the Act. The 

complaint charges that the respondent violated both the speculative daily 

trading limit, as fixed by the Commodity Exchange Commission, and the reporting 

requirements of the Commodity Exchange Act. Such acts were alleged to have been 

wilful and in violation of sections 4a, 4i and 6(b) of the Act (7 U.S.C. §§ 6a, 

6i, and 9) and sections 150.5, 15.01, 15.03, 18.00, 18.01, and 18.03 (7 CFR 

150.5, 15.01, 15.02, 15.03, 18.00, 18.01. and 18.03). 

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 consents to the entry, 

without further proceedings, of a Decision and Order containing the facts 

admitted in such stipulation as the findings of fact, conclusions of law based 

on such findings and the order contained herein. 

FINDINGS OF FACT 

1. Roy D. Simmons is now, and was at all times material, a registered floor 

broker under the Commodity Exchange Act and a member of the Chicago Mercantile 

Exchange. 
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2. The Chicago Mercantile Exchange is now, and was at all times material, a 

duly designated contract market under the Commodity Exchange Act. 

3. On December 5, 1969, Mr. Simmons held open contracts in shell egg futures 

on the Chicago Mercantile Exchange in excess of 25 carlots in a single future. 

4. Roy D. Simmons submitted reports to the Commodity Exchange Authority which 

purported to show all transactions executed for him and his position in shell 

egg futures on the Chicago Mercantile Exchange on December 5, 1969, but such 

reports did not show the actual transactions executed for him or the true 

position held by him. 

5. On December 5, 1969, Mr. Simmons made speculative sales of 187 carlots in 

shell egg futures on or subject to the rules of the Chicago Mercantile Exchange. 

CONCLUSIONS 

By reason of the facts set forth above, Roy D. Simmons violated section 4a of 

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

Commission, establishing limits on the daily trading in shell eggs for future 

delivery (17 CFR 150.5) and Mr. Simmons submitted a false report to the 

Commodity Exchange Authority in violation of sections 4i and 6(b) of the 

Commodity Exchange Act (7 U.S.C. §§ 6i and 9) and sections 15,01, 15.02, 15.03, 

18.00, 18.01, and 18.03 (17 CFR §§ 15.01, 15.02, 15.03, 18.00, 18.01 and 18.03) 

of the rules and regulations thereunder. 

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 

recommends, therefore, that the stipulation be accepted and the proposed order 

be issued. 

ORDER 

Effective upon the date of service of this order, the respondent, Roy D. 

Simmons, shall cease and desist from exceeding the speculative trading or 

position limits fixed by the Orders of the Commodity Exchange Commission. 

Further, the respondent, Roy D. Simmons, shall cease and desist from wilfully 

making any false or misleading statements of a material fact in any report filed 

with the Secretary of Agriculture under the Commodity Exchange Act. 

Effective upon the thirtieth day after the date of entry of this order, (1) 

the registration of the respondent as floor broker under the Commodity Exchange 

Act is suspended for a period of six (6) months, and (2) the respondent is 

prohibited from trading in commodities on or subject to the rules of any 

contract market for a period of six (6) months, and all contract markets shall 

refuse all trading privileges to the respondent during this period. Such 

prohibition and refusal shall apply to all such trading done and 

positions held directly by the respondent, either for his own account or as the 

agent or representative of any other person or firm, and also to all such 

trading done through, and to all positions held indirectly by, persons or firms 

owned wholly or in substantial amount by said respondent, or in any way subject 

to his discretion or control, wholly or substantially. 

A copy of this Decision and Order shall be served on the respondent and on 

each contract market. 

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