The Commodity Futures Trading Commission (CFTC) today issued an order simultaneously filing and settling charges against Starberry Limited for acting as a futures commission merchant (FCM) without being registered.

Specifically, Starberry accepted and placed orders and accepted money in connection with those orders from a foreign customer for NYMEX West Texas Intermediate (WTI) crude oil futures contracts.

The order requires Starberry to pay a $1,376,206.81 civil monetary penalty and cease and desist from violating Section 4d(a)(1) of the Commodity Exchange Act (CEA), 7 U.S.C. § 6d(a)(1). Starberry also agrees to disgorge $1,376,206.81 in commission and fees it unlawfully earned by acting as an FCM without registration.

The order specifically finds that from February 28, 2020 through March 17, 2020, while not registered in any capacity, Starberry accepted more than $400 million from a foreign customer and deposited that money in Starberry’s proprietary trading account. Starberry then executed more than 12,500 NYMEX WTI trades in March 2020, which resulted in more than $86 million in profits for the foreign customer and $1,376,206.81 in commission and fees for Starberry.

The order recognizes respondent’s substantial cooperation in the form of a substantially reduced penalty.