Alfred C. Toepfer International, Inc. resolved charges brought by the CFTC related to the firm’s allegedly inaccurate reporting of certain physical commodity positions from May 2010 through December 2013. Under applicable CFTC rules, persons holding bona fide hedging positions in excess of CFTC position limits in wheat, corn, oats, soybean oil and soybean meal are obligated to file monthly reports with the CFTC – known as CFTC Form 204s –setting forth the fixed price cash positions of each commodity hedged. During the relevant time, said the Commission, on 44 occasions, Toepfer reported not only fixed price cash positions but basis priced positions too (e.g., cash positions priced by reference to another product or derivative). After the relevant period Toepfer included only the correct information on its Form 204 filings with the CFTC. The firm has never been registered with the CFTC.
Compliance Weeds: CFTC Form 204 (Statement of Cash Positions in Grains, Soybeans, Soybean Oil and Soybean Meal) and Parts I and II of Form 304 (Statement of Cash Position in Cotton – Fixed Price Cash Positions) must be filed by any person that holds or controls a position in excess of relevant federal speculative position limits that constitutes a bona fide hedging position under CFTC rules. These documents must be made as of the close of business on the last Friday of the relevant month. Form 204 must be received by the CFTC in Chicago by no later than the third business day following the date of the report, while Form 304 must be received by the Commission in New York by no later than the second business day following the date of the report. Part III of Form 304 (Unfixed Price Cotton “On-Call”) must be filed by any cotton merchant or dealer that holds a so-called reportable position in cotton (i.e., pursuant to large trader reportable levels; click here to access CFTC Rule 15.03) regardless of whether or not it constitutes a bona fidehedge. Form 304 (Part III) must be made as of the close of business on Friday every week, and received by the CFTC in New York by no later than the second business day following the date of the report.