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2012 CFTC LEXIS 74; Comm. Fut. L. Rep. (CCH) P 32443

Commodity Futures Trading Commission

November 20, 2012

CFTC Docket No. 13-05

Opinion

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

The Commodity Futures Trading Commission ("Commission") has reason to believe that on April 29, 2009, Eagle Market Makers Inc. ("Respondent" or "Eagle") violated Section 4a(b)(2) of the Commodity Exchange Act, as amended, (the "Act") and Commission Regulations 150.2 and 166.3 ("Regulations" ). 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, Respondent has submitted an Offer of Settlement ("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, as Amended, Making Findings  [*2]  and Imposing Remedial Sanctions ("Order") and acknowledges service of this Order. 1

The Commission finds the following:

A. SUMMARY

On April 29, 2009, Respondent held a net short May 2009 corn futures position that exceeded the spot month speculative position limits established by the Commission. In addition, Respondent did not diligently  [*3]  supervise its traders with respect to speculative position limits.

B. RESPONDENT

Eagle Market Makers Inc. is a Chicago-based firm that makes markets in exchange-traded futures contracts, with a significant presence in the agricultural futures complex. Eagle is currently registered with the Commission as a commodity pool operator ("CPO"), commodity trading advisor ("CTA"), and futures commission merchant ("FCM").

C. FACTS

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2012 CFTC LEXIS 74 *; Comm. Fut. L. Rep. (CCH) P 32443

In the Matter of: Eagle Market Makers Inc., Respondent.

CORE TERMS

eagle, speculative, commodity, supervisory, diligently, supervise, corn, trader, registrant, binder, electronic funds transfer, successor, agents, train, spot