ICE fines Olam International for alleged rule violations

ICE Futures U.S. has published a disciplinary notice against Olam International Limited.

A subcommittee of the Exchange’s Business Conduct Committee (BCC) determined that Olam International Limited may have violated Exchange Rule 6.18(b) on February 17, 2022 by establishing positions in the spot month Coffee “C” futures contract that exceeded the contract’s notice period position limit.

The relevant Exchange rule states:

• Rule 6.18(b) – Position Limits and Position Accountability for Coffee “C” Contracts

Subject to the exceptions contained in this Chapter, the maximum net long or net short position which any one (1) Person may hold or control in the Coffee “C” Contract is five hundred (500) Exchange Futures Contracts for any month for which delivery notices have or may be issued.

In accordance with the terms of settlement, in which Olam neither admitted nor denied the alleged rule violations, Olam agreed to pay a monetary penalty of $30,000 and disgorge profits of $430,950.25.