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Commodity Futures Trading Commission 

CEA CASES 

NAME: NICHOLS & CO. 

DOCKET NUMBER: STIPULATION 107 

DATE: JULY 8, 1968 

DOCUMENT TYPE: STIPULATION OF COMPLIANCE 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Nichols & Co. 

Stipulation of Compliance Under the Commodity Exchange Act No. 107 

The Secretary of Agriculture has reason to believe that Nichols & Co. 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. No 

complaint with respect to such violations has been issued and the said Nichols & 

Co. is 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, Part 0). Therefore, the said Nichols & Co. 

stipulates the following facts are true: 

(1) Nichols & Co. is now and was at all times mentioned herein a registered 

futures commission merchant under the Commodity Exchange Act with an office and 

principal place of business at 75 Federal Street, Boston, Massachusetts 02110. 

(2) At all times material hereto, Nichols & Co., acting in its capacity as 

futures commission merchant, carried accounts for customers who traded in 

commodity futures subject to the provisions of the Commodity Exchange Act and 

regulations and 

had to its credit with banks or other depositories, money in varying amounts 

held in segregated accounts and identified as customers' funds, representing 

deposits of margin by and trading profits belonging to such customers. 

(3) As of May 20, 1968, Nichols & Co. had failed to compute and keep a record 

as of the close of the market on 25 business days during the period of April 15 

through May 20, 1968, showing the amount of money owing or accruing to its 

customers which it was required to have in segregated account for such customers 

in order to comply with the requirements of section 4d(2) of the Commodity 

Exchange Act. 

(4) Previous failures to compute and keep such records were called to the 

attention of Nichols & Co. by the Director of the Accounting and Licensing 

Division, Commodity Exchange Authority, in a letter dated June 17, 1966. 

The Commodity Exchange Authority has advised Nichols & Co. that failure to 

compute and keep a record as described in paragraph (3) above was in violation 

of section 4d(2) of the Commodity Exchange Act and section 1.32 of the 

regulations thereunder. 

The said Nichols & Co. 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 
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and practices in any future proceeding based upon acts or practices in addition 

to those referred to herein which may be brought by the Secretary of Agriculture 

against it under the provisions of the said act. Nichols & Co. 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, N. Y this 

8 day of July 1968 

NICHOLS & CO. 

By: [SEE SIGNATURE IN ORIGINAL] 

[SEE SIGNATURE IN ORIGINAL] 

Witnessed by: 

[SEE SIGNATURE IN ORIGINAL] 

[SEE SIGNATURE IN ORIGINAL] 

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