Page 38 - 期货和衍生品行业监管动态（2024年8月刊）

期货和衍生品行业监管动态

CFTC Orders Brazilian and Swiss Sugar Companies to Pay $750,000 for Wash
Sales (2024/8/19)

The Commodity Futures Trading Commission today issued an order

simultaneously filing and settling charges against respondents Raizen Energia SA, a

Brazilian energy company and sugar merchant, and Raizen Trading SA, a Swiss sugar

merchant, for engaging in wash sales and non-competitive transactions. The order

requires the respondents jointly and severally to pay a $750,000 civil monetary

penalty. The respondents admit the facts detailed in the order and are ordered to cease

and desist from further violations of the Commodity Exchange Act and CFTC

regulations, as charged.

Case Background

The order finds from March 2022 to September 2022, the respondents engaged

in 44 wash sales and noncompetitive transactions by executing exchange for physical

transactions (EFPs) involving sugar futures contracts traded on ICE Futures U.S. An

EFP is a transaction involving a simultaneous exchange of a futures position for a

corresponding cash position, i.e., one party buys the physical commodity and

simultaneously sells or gives up a long futures contract, and the other party sells the
physical commodity and simultaneously buys or receives a long futures contract.

The order concludes the respondents’ EFPs were illegal wash sales and

noncompetitive transactions because they were executed between accounts that were

not independently controlled. According to the order, the respondents executed the

wash EFPs in order to facilitate the intercompany transfer of physical sugar between

Raizen entities and to offset futures positions the respondents took to hedge the price

risk associated with their physical sugar contracts. In the aggregate, the respondents’

wash EFPs accounted for more than 50,000 sugar contracts worth more than $1

billion.

The order acknowledges the respondents’ representations concerning their

25