Chinese Cotton Traders Fined for Evading Position Limits

(Bloomberg) — China’s state-owned Chinatex Corp. Ltd. and Cofco Resources SA agreed to pay a total of $3.3 million in fines issued by ICE Futures U.S. for working together in 2020 to evade position limits in cotton futures, the exchange said in a notice.

ICE said that between April and June 2020, Chinatex allowed some employees to trade through a Cofco Resources account, allowing Chinatex to hold a position exceeding the 5,000 contract limit set by the exchange. The companies later shifted the positions from Cofco’s account to Chinatex through prearranged trades, ICE said.