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Commodity Futures Trading Commission 

CEA CASES 

NAME: ROBERT P. TALLIAN 

DOCKET NUMBER: 236 

DATE: FEBRUARY 5, 1975 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Robert P. Tallian, Respondent 

CEA Docket No. 236 

Complaint and Notice of Hearing Under the Commodity Exchange Act 

There is reason to believe that the respondent has violated the Commodity 

Exchange Act (7 U.S.C. 1 et seq.), and the regulations issued thereunder (17 CFR 

1.1 et seq.), and therefore this Complaint and Notice of Hearing is issued 

alleging the following: 

I 

Respondent Robert P. Tallian, 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. 

II 

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. 

III 

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 . . . . 
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(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. 

IV 

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. 

V 

On various dates, specified below, respondent Tallian 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 Robert P. Tallian 

Miller-Lane & 

Co. Customer 

Date Quantity n1 Future Commodity Price Buying Selling 

7/ 2/73 5 December Wheat 277 50951 62014 7/ 3/73 5 December Wheat 282 25004 30036 

 

7/ 5/73 5 December Wheat 280 30012 25046 

15 December Wheat 283 7/8 65004 59158 

5 December Wheat 283 7/8 65004 30012 

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 

7/6/73 1 December Wheat 268 3/8 15006 00222 

1 December Wheat 268 3/8 15003 00222 

10 December Corn 194 1/2 59134 44034 

7/9/73 4 March Wheat 266 10452 60040 

5 March Wheat 266 10452 60092 

1 March Wheat 266 1/8 10452 10050 

 7/10/73 1 March Wheat 256 10050 80018 

2 December Wheat 257 59090 65004 7/11/73 1 December Wheat 266 61002 12002 

1 March Wheat 263 1/4 44005 80018 

5 July Wheat 273 3/4 60078 28040 

 7/12/73 5 September Wheat 278 54062 30072 

5 December Wheat 277 1/8 65002 18052 

2 December Wheat 277 1/2 65002 62036 
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 Miller-Lane & 

 Co. Customer 

Date Quantity n1 Future Commodity Price Buying Selling 

7/13/73 2 March Corn 211 37004 59126 

1 September Corn 219 20040 10421 

5 September Corn 219 20040 31012 

3 September Corn 221 56013 55004 

2 September Corn 221 56013 37020 

5 December Corn 207 1/2 60062 44020 

3 December Corn 209 3/8 80006 63062 

 7/16/73 10 July Corn 246 28040 00222 

5 September Corn 229 3/8 36010 63074 

2 December Corn 214 1/2 44030 28099 

2 December Corn 214 1/2 44028 28099 

5 December Corn 215 38078 61002 

2 December Corn 217 38066 44050 7/17/73 5 May Corn 219 26042 63062 

5 September Corn 224 42030 60090 

5 December Corn 211 7/8 59078 29034 

1 December Corn 212 59078 61010 

1 December Corn 212 59078 61010 

2 December Corn 212 1/2 44030 18034 

10 December Corn 212 1/2 44007 54023 

5 December Corn 215 61002 63062 

1 December Corn 215 61002 63084 

5 December Corn 215 1/2 38013 59078 

5 December Corn 215 1/2 61008 26016 

3 December Corn 215 1/2 61018 26016 

1 December Corn 216 10312 25072 

3 December Corn 216 1/4 27026 63062 

n1 Quantities are in '000's of bushels. 

 

See original document-page 4 

Miller-Lane & 

Co. Customer 

Date Quantity n1 Future Commodity Price Buying Selling 

7/18/73 1 December Wheat 270 10421 11460 

2 December Wheat 277 80036 62036 

7/20/73 5 December Wheat 292 1/4 18052 00222 

5 December Wheat 294 1/2 18064 00207 

5 December Wheat 300 3/4 25072 18064 

5 December Wheat 300 3/4 65003 18064 

10 December Wheat 300 3/4 65005 00203 

5 December Wheat 300 3/4 65005 59090 

5 December Wheat 300 3/4 65005 59130 

5 December Wheat 300 3/4 65006 28040 

10 December Wheat 300 3/4 65006 18089 

4 December Wheat 300 3/4 65006 18069 

1 December Wheat 300 3/4 65006 38017 

1 December Wheat 300 3/4 95006 64204 

4 December Wheat 300 3/4 95006 18035 

5 December Wheat 300 3/4 00207 18052 

1 December Wheat 300 3/4 12002 80028 

4 December Wheat 297 50852 61004 

n1 Quantities are in '000's of bushels. 

VI 
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By reason of the facts alleged in this complaint, the respondent has wilfully 

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). 

WHEREFORE, it is hereby ordered that this Complaint and Notice of Hearing be 

served upon the respondent, and this proceeding shall be governed by sections 

0.1, 0.2, 0.4(b), 0.5 through 0.22, and 0.28 of the rules of practice under the 

Commodity Exchange Act (17 CFR 0.1, 0.2, 0.4(b), 0.5 through 0.22, and 0.28). 

The respondent will have twenty (20) days after the receipt of this complaint in 

which to file with the Hearing Clerk, United States Department of Agriculture, 

Washington, D. C. 20250, an answer with an original and three copies fully and 

completely stating the nature of the defense and admitting or denying, 

specifically and in detail, each allegation of this complaint. Allegations not 

answered will be deemed admitted for the purpose of this proceeding. Failure to 

file an answer will constitute an admission of all the allegations of this 

complaint and a waiver of hearing. The filing of an answer in which all the 

material allegations of fact contained in the complaint are admitted, likewise 

shall constitute a waiver of hearing unless a hearing is requested. The 

respondent is hereby notified that unless such hearing is waived, the hearing 

will be held in Chicago, Illinois, at a place therein and date to be specified 

later, before an Administrative Law Judge designated to conduct such hearing. 

At such hearing, the respondent will have the right to appear and show cause, if 

any there be, why an appropriate order should not be issued in accordance with 

the Commodity Exchange Act (1) suspending or revoking the registration of the 

respondent as a floor broker, (2) prohibiting the respondent from trading on or 

subject to the rules of any contract market, and directing that all contract 

markets refuse all trading privileges to the respondent for such period of time 

as may be determined, and (3) directing that the respondent shall cease and 

desist from violating the Commodity Exchange Act and regulations in the manner 

alleged herein. 

Done at Washington, D. C. February 5, 1975 

[SEE SIGNATURE IN ORIGINAL] 

RICHARD L. FELTNER 

Assistant Secretary 

LOAD-DATE: June 16, 2008 
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