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Commodity Futures Trading Commission 

CEA CASES 

NAME: MERRILL LYNCH, PIERCE, FENNER & SMITH, INCORPORATED, AND MANUEL WEISBUCH 

DOCKET NUMBER: STIPULATION 56 

DATE: JULY 15, 1960 

DOCUMENT TYPE: STIPULATION OF COMPLIANCE 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Merrill Lynch, Pierce, Fenner & Smith, Incorporated, and Manuel Weisbuch 

Stipulation of Compliance 

No. 56 

The Secretary of Agriculture has reason to believe that Merrill Lynch, 

Pierce, Fenner & Smith, Incorporated, hereinafter called Merrill Lynch, and 

Manuel Weisbuch have violated the provisions of the Commodity Exchange Act (17 

CFR, Chapter 1) by virtue of certain transactions in grain futures as set forth 

below. 

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

Merrill Lynch and Manuel Weisbuch are desirous of disposing of the matter by 

entering into a stipulation of compliance, as authorized by section 0.4(a) of 

the Rules of Practice under the Commodity Exchange Act (17 CFR, 0.0-0.28). 

Therefore, the said Merrill Lynch and Manuel Weisbuch stipulate the following 

facts are true: 

1. Merrill Lynch is, and was at all times mentioned herein, a corporation 

with an office and principal place of business at 70 Pine Street, New York 5, 

New York. At all such times the said corporation was a registered futures 

commission merchant under the Commodity Exchange 

Act, and exercised membership trading privileges and clearing privileges on the 

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

Trade, a duly designated contract market. 

2. Manuel Weisbuch, an individual whose address is 70 Pine Street, New York 

5, New York, is and was at all times mentioned herein a vice president of the 

said firm of Merrill Lynch. 

3. On October 27, 1959, a customer of the said firm of Merrill Lynch, acting 

for his own account and another account over which he held power of attorney, 

gave the following orders simultaneously by telephone to Manuel Weisbuch, acting 

on behalf of the said Merrill Lynch, for execution on the Chicago Board of 

Trade: 

Sell and Buy 105,000 Bushels of March Wheat 

Sell and Buy 40,000 Bushels of December Rye 

Sell and Buy 20,000 Bushels of May Oats 

The customer instructed Mr. Weisbuch to first sell to close out existing long 

positions and then buy to reinstate the positions for the two accounts as close 

to the same price as possible, stating to Manuel Weisbuch that the accounts were 

taking profits on the existing long positions for tax purposes. The above 

orders and instructions were accepted by Manuel Weisbuch and relayed to the 
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Chicago office of the said Merrill Lynch and thence to floor brokers on the 

Chicago Board of Trade, who executed them as follows: 

105 March Wheat Sold and Bought @ $ 2.04 1/2 

20 May Oats Sold and Bought @ $ 0.72 5/8 

25 December Rye Sold and Bought @ $ 1.36 3/8 

15 December Rye Sold and Bought @ $ 1.36 1/2 

The Secretary of Agriculture has advised Merrill Lynch, Pierce, Fenner & 

Smith and Manuel Weisbuch that these were "wash trades" in violation of section 

4c(A) of the Commodity Exchange Act. 

The said Merrill Lynch and Manuel Weisbuch agree to desist from such 

transactions in the future, and to refrain from entering into "wash trades" and 

to refrain from entering orders which call for or encourage execution of "wash 

trades." They further understand and agree that this stipulation shall be 

admissible as evidence of such acts and practices in any proceeding based upon 

transactions in addition to those referred to herein which may hereafter be 

brought by the Secretary of Agriculture against either of them under the 

provisions of the said act. They also understand that it is the practice of the 

Commodity Exchange Authority to make stipulations of compliance a matter of 

public record. 

Done at New York, New York, this 15th day of July 1960 

MERRILL LYNCH, PIERCE, FENNER & SMITH 

Incorporated 

By /s/ Donald T. Regan 

Donald T. Regan, Secretary & Vice President 

/s/ Manuel Weisbuch 

Accepted: 

Commodity Exchange Authority 

by /s/ Alex C. Caldwell 

Administrator 

LOAD-DATE: June 16, 2008 
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