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2011 CFTC LEXIS 44; Comm. Fut. L. Rep. (CCH) P 32013

Commodity Futures Trading Commission

July 19, 2011

CFTC DOCKET NO. 11-16

Opinion

ORDER INSTITUTING PROCEEDINGS PURSUANT TO SECTIONS 6(c), AND 6(d) OF THE COMMODITY EXCHANGES ACT, MAKING FINDINGS AND IMPOSING REMEDIAL SANCTIONS

The Commodity Futures Trading Commission ("Commission") has reason to believe that, from September 21, 2007 to October 17, 2007, Ecoval Dairy Trade, Inc. ("Ecoval" or "Respondent") violated Sections 6(c), 6(d), and 9(a)(2) of the Commodity Exchange Act (the "Act"), 7 U.S.C. §§ 9, 13b, and 13(a)(2) (2006). Therefore, the Commission deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted to determine whether Respondent engaged in the violations set forth herein and to determine whether any order should be issued imposing remedial sanctions.

In anticipation of the institution of an administrative proceeding, the Respondent has submitted an Offer of Settlement (the "Offer"), which the Commission has determined to accept. Without admitting or denying any of the findings or conclusions herein, Respondent consents to the entry of this Order Instituting Proceedings Pursuant to Sections 6(c) and 6(d) of the Commodity Exchange Act, Making [*2]  Findings and Imposing Remedial Sanctions ("Order") and acknowledges service of this Order. 1

The Commission finds the following:

A. SUMMARY

During the period from September 21, 2007 through October 17, 2007 (the "Relevant Period"), Ecoval attempted to manipulate the daily settlement prices of each of the Chicago Mercantile Exchange ("CME") Non Fat Dry Milk ("NFDM")  [*3]  monthly commodity futures contracts for December 2007 through July 2008. Ecoval executed various trading strategies on the electronic market trading platform, Globex, with the intent to "push" the prices of these NFDM futures contracts higher so Ecoval could potentially establish a large short position in these NFDM futures contracts at higher prices.

B. RESPONDENT

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2011 CFTC LEXIS 44 *; Comm. Fut. L. Rep. (CCH) P 32013

In the Matter of: Ecoval Dairy Trade, Inc. Respondent.

CORE TERMS

manipulate, commodity, monetary penalty, electronic, futures trading, high prices, bid, settlement, date of entry, successor, register, push