Opportunities in Options ordered to pay
$10,919 plus interest and fee.
No.
40-98
October 2,
1998
Weekly Advisory
Commodity Futures Trading Commission
Three Lafayette Centre 1155 21st Street, NW Washington,
DC 20581 Telephone: (202) 418-5080 Facsimile: (202)
418-5525
Home Page: http://www.cftc.gov/
Antoinette
B. McCoy, Editor
Initial Decisions
Atul Mehta v. Opportunities in Options.
Filed September 25, 1998. Atul Mehta alleged that : 1)
on August 13, 1997, Opportunities in Options improperly
liquidated an option position to satisfy a $60,000
margin call; 2) on August 15, 1997, agents for
Opportunities-In-Options mishandled a stop order; and 3)
on August 15, 1997, in reliance on erroneous advice by
an agent for Opportunities-In-Options, Mehta allowed an
option position to be exercised, which then triggered a
margin call and a second forced liquidation. Respondents
denied any violations, and counterclaims for the debit
balance. It was concluded that Mehta has shown that he
is entitled to a reparation award in connection with the
erroneous advice on August 15, 1997, but that he has
failed to show any violations in connection with the
liquidation on August 13 or the order filled on August
15, 1997. It was also concluded that
Opportunities-In-Options has failed to show that it was
entitled to the counterclaim. Opportunities-In-Options
was ordered to pay Atul Mehta reparations of $10,919,
plus interest on that amount at 4.730% compounded
annually from August 18, 1997, to the date of payment,
plus $125 in costs for the filing fee. Accordingly,
Opportunities-In-Options' counterclaim was dismissed.
Philip V. McGuire, Judgment Officer. CFTC Docket No.
97-R144.
From http://www.cftc.gov/opa/adv98/wa40-98.htm
Back To Top
|
