Chinese state-owned companies Chinatex and COFCO Resources (CRSA) have agreed to pay a $3.3 million fine for suspected violations of US futures market rules, ICE Futures said yesterday. However, they neither admitted nor denied the violation of rules of exchange of agricultural products.
According to ICE Futures, Chinatex used the account of its subsidiary, COFCO Resources, to hold a trading position in April 2020 that exceeded the authority’s position limit in a cotton contract.
Also, according to ICE Futures, Chinatex employees allegedly used a CRSA account to transfer cotton positions to Chinatex accounts by pre-arranging trades between April and June 2020 in violation of stock market rules.
Chinatex and CRSA are subsidiaries of Chinese public group COFCO.
