ICE Futures Europe has resolved disciplinary action against 4STOX NV, a warehouse keeper in Antwerp, and CTW Commodities (UK) Limited, an entity 4STOX outsourced certain logistical operations to. It has also reached agreement with Durme Natie CVBA, another warehousing company at Port of Antwerp.
Gary DeWaal, a lawyer at Katten Muchin Rosenman, said LLP4STOX was accused by the exchange of violating its grading and warehousekeeping procedures after an inspection of lots of Robusta coffee at a warehouse uncovered sampling issues.
4STOX agreed to pay a fine of £50,000 (approximately US$65,000) to resolve the matter.
CTW was accused of violating the same procedures for its role as outsource agent, but was only issued with a warning.
Mr De Waal also noted that Durme Natie CVBA, a warehousing company specializing in the handling of soft commodities in the Port of Antwerp in Belgium, has agreed to pay a fine of £33,333 (US$43,000) to resolve a disciplinary action brought by ICE Futures Europe that it also failed to comply with certain aspects of the exchange’s grading and warehousing procedures regarding the exchange’s cocoa contracts.
Among other things, ICE Europe claimed that the warehouse failed to record and maintain as required a method for the exchange or other third party to ‘readily’ locate and identify relevant cocoa, and to comply by other technical requirements.