P.M. BRIEFING : 4 Yen Traders Charged in Chicago

The Chicago Mercantile Exchange has charged four traders with rules violations in its Japanese yen futures pit, one of several areas at the exchange targeted by federal prosecutors, a source familiar with the cases said today.

Exchange spokesman Andy Yemma would not confirm that the exchange has brought charges, but the lawyer for one of the traders said the four have been charged. The traders could be forced to pay heavy fines and could even be expelled by an exchange disciplinary committee.

Chicago attorney Robert Tarun said up to 35 people could be accused in connection with the investigation, with the first round of indictments likely by Wednesday.

The charges brought by the exchange could overlap with federal indictments, expected as soon as this week, in the two-year undercover federal investigation into alleged trading abuses at the Mercantile Exchange and the Chicago Board of Trade.