U.S. - NFA and CFTC Regulation News

CFTC's David Terrell to Appear in Tallinex Case

18 Oct 2017, Washington, DC, USA - FinanceFeeds News - David Terrell, known for his role in CFTC legal actions against foreign FX companies breaking US laws, will act as counsel for the regulator in its action against retail Forex broker Tallinex. The United States Commodity Futures Trading Commission (CFTC) is beefing up its team in the civil case it launched against retail FX broker Tallinex and its purported introducing broker in the United . . .

US Court Issues $22.9 Million Fraud Judgement against IKON Global Markets

30 Aug 2017, Chicago, IL, USA - LeapRate - LeapRate has learned from court documents that about two weeks ago a US judge in Illinois entered a $22. 9 judgement in favor of several plaintiffs which had sued Retail Forex broker IKON Global Markets for fraud, as well as its former principals Diwakar Jagganath, Ioannis Litinas and George Daskaleas. IKON Global Markets was the NFA-licensed subsidiary of the IKON Finance group, controlled by Turkish . . .

CFTC Starts Legal Action against Retail FX Broker Tallinex

5 Jun 2017, Washington, DC, USA - CFTC - CFTC charges Estonian company Tallinex with fraud and failure to register as a retail foreign exchange dealer and Nevada company General Trader Fulfillment with failure to register as an Introducing Broker. The U. S. Commodity Futures Trading Commission (CFTC) today announced the filing of a civil enforcement action in the U. S. District Court for the District of Utah against Tallinex a/k/a Tallinex . . .

CFTC Adds 71 Brokers to RED List Including FXGM and iFOREX

25 Apr 2017, Washington, DC, USA - CFTC - As part of the U. S. Commodity Futures Trading Commission's (CFTC) ongoing efforts to help protect Americans from fraud, today the CFTC added 71 new names to the RED List. These 71 new additions bring the total number of foreign entities on the RED List to over 110. The RED List - standing for "Registration Deficient" was launched in September 2015 (see CFTC Press Release 7224-15 and . . .

FXCM Settles on $650,000 CFTC Fine for Being Undercapitalized after the Swiss Franc Spike of January 2015

13 Feb 2017, Washington, DC, USA - LeapRate - LeapRate has learned from court documents that retail forex broker FXCM Inc (NASDAQ:FXCM), recently banned from the US forex market, has agreed to pay a $650,000 fine in settlement of charges that it was undercapitalized, and slow to report its capital position, in the wake of the January 15, 2015 spike in the value of the Swiss Franc. We had reported that the CFTC had announced that it was looking . . .

NFA Bars FXCM and its Principals from Membership

6 Feb 2017, Chicago, IL, USA - NFA - National Futures Association (NFA) has barred New York retail foreign exchange dealer Forex Capital Markets, LLC (FXCM) from membership. NFA also barred FXCM principals Dror Niv, William Ahdout, and Ornit Niv from membership and from acting as a principal of an NFA Member. The Decision, issued by NFA's Business Conduct Committee (BCC), is based on a Complaint issued by the BCC and a settlement . . .

CFTC Orders FXCM to Pay a $7 Million Penalty for FXCM's Defrauding of Retail Forex Customers

6 Feb 2017, Washington, DC, USA - CFTC - Parent company, FXCM Holdings, LLC and FXCM's founding partners, Dror Niv and William Ahdout are held responsible. FXCM, Niv, and Ahdout are prohibited from registering with the CFTC, acting in exempt capacities or acting as principals, agents, officers or employees of registrants. CFTC's order also holds FXCM, Niv, and FXCM Holdings responsible for FXCM's false statements to the National Futures Association.

NFA Comfrims New Forex Transaction Rules

6 Jan 2017, Chicago, IL, USA - AtoZ Forex - In November, NFA proposed new rules seeking to increase transparency of transaction execution data. Today, it has been announced that NFA New Forex transaction rules confirmed. What kind of information can traders request? The US Commodities Futures Trading Commission (CFTC) has approved the new rules proposed by the self-regulatory body, National Futures Association (NFA). The proposed rules are related . . .

NFA Fines and Settles Case with Forex IB Avail Trading Corp for $30,000 for Alleged Violations

20 Dec 2016, Chicago, IL, USA - LeapRate - The National Futures Association (NFA) today, December 19, 2016, at an NFA Hearing Panel, issued a Decision accepting Forex introducing broker Avail Trading Corp (Avail Trading) and David Manoukian's settlement offer and imposed a $30,000 fine to be paid within 30 days. On June 30, 2016, NFA's Business Conduct Committee (BCC) issued a Complaint to Avail Trading Corp and David Manoukian (Manoukian). The . . .

NFA Submits New Forex Trade Transaction Disclosure Rules to CFTC

30 Nov 2016, Chicago, IL, USA - LeapRate - The National Futures Association (NFA) this week has submitted to the Commodity Futures Trading Commission (CFTC) new Forex data transaction disclosure rules which were unanimously approved by NFA board members and of which reps from the five USA based retail Forex Dealer Members (FDMs) indicated that they had no objection to providing.

CFTC Reports More than $1.2 Billion in Fines and Restitution in Fiscal 2016

21 Nov 2016, Washington, DC, USA - LeapRate - US financial regulator the CFTC has issued a summary of its activity for its 2016 fiscal year (which ended September 30), indicating among other things that it more than pays for itself. cftc-logoThe CFTC collected and deposited at the U. S. Treasury over $484 million in civil monetary penalties during the year, nearly double the CFTC's operating budget for FY 2016. In total, the CFTC this year . . .

Federal Court Orders IB Capital FX, LLC to Pay More than $35 Million in Restitution and a Civil Penalty

17 Nov 2016, Washington, DC, USA - CFTC - The U. S. Commodity Futures Trading Commission (CFTC) obtained a Consent Order against Defendants IB Capital FX, LLC (a/k/a IB Capital FX (NZ) LLP) d/b/a IB Capital (IB Capital), Michel Geurkink, and Emad Echadi, requiring them to pay, jointly and severally, $35 million in restitution to defrauded customers and a $420,000 civil monetary penalty for soliciting and accepting at least $50 million from . . .

FXCM and Gain Capital Introducing Broker Vankar Trading Permanently Barred by NFA

6 Oct 2016, Chicago, IL, USA - LeapRate - Introducing broker Vankar Trading, an NFA-member introducing broker based in Chicago, has seen the NFA permanently bar it from membership and from acting as principal of an NFA member. In addition, the NFA has barred John S. Karvelas, sole principal of Vankar, from acting as a principal of an NFA Member for 10 years. Karvelas was also ordered to pay a $15,000 fine.

ZuluTrade Exits US Retail Forex Market Withdrawing NFA Membership, Finalizes $30,000 Settlement

4 Oct 2016, Chicago, IL, USA - LeapRate - LeapRate has learned that social trading platform provider ZuluTrade has decided to withdraw its status as an NFA licensed introducing broker (IB), and exit the US retail forex market. ZuluTrade has been an NFA member since 2008, when it was one of the early entrants in the social and copy trading space. ZuluTrade's NFA membership was terminated as of July 14, 2016, as well as its status as a 'Forex Firm' . . .

CFTC Fines Russian Banking Giant VTB $5 Million for Fictitious FX Trades

20 Sep 2016, Washington, DC, USA - CFTC - The U. S. Commodity Futures Trading Commission (CFTC) today issued an Order filing and simultaneously settling charges against banking institutions JSC VTB Bank (VTB), headquartered in St. Petersburg, Russia, and VTB Capital PLC (VTB Capital) for executing fictitious and noncompetitive block trades in Russian Ruble/U. S. Dollar (RUB/USD) futures contracts, which were cleared through the Chicago . . .

FXCM Admits Capital Shortfall, Denies other CFTC Accusations

22 Aug 2016, Washington, DC, USA - SMN Weekly - Forex Capital Markets (FXCM), US' leading forex broker, denied the accusations of the US Commodity Futures Trading Commission (CFTC) that it had failed to timely report undercapitalization violation and that it had guaranteed against customer losses at the time of the crisis in January 2015 resulted from the unpegging of the Swiss franc (CHF) from the Euro (EUR). On Friday, the CFTC issues a . . .

CFTC Charges Forex Capital Markets, LLC with Undercapitalization, Failing to Timely Report Undercapitalization, and Guaranteeing against Customer Losses

18 Aug 2016, Washington, DC, USA - CFTC - The U. S. Commodity Futures Trading Commission (CFTC) filed a civil enforcement action in the U. S. District Court for the Southern District of New York against Forex Capital Markets, LLC (FXCM), charging FXCM with undercapitalization, failure to timely report its undercapitalization violation, and guaranteeing against customer losses. FXCM, with headquarters in New York, New York, is registered with . . .

NFA Charges U.S. Introducing Broker Avail Trading Corp in Latest Complaint

4 Jul 2016, Chicago, IL, USA - Finance Magnates - In addition to Avail Trading Corp, the NFA separately charged Vincent Capital Group LLC. California-based Introducing Broker (IB) Avail Trading Corp. has been issued a complaint from the National Futures Association (NFA), according to updated information from the independent US futures market regulatory organization based in Chicago. NFA noted that it had become aware of the bankruptcy process . . .

NFA Set to Double Fee for Forex Order Reporting

2 Jun 2016, Chicago, IL, USA - LeapRate - LeapRate has learned that the National Futures Association (NFA) has just sent a letter to the Commodity Futures Trading Commission (CFTC), in which if within 10 days no review is requested, the transaction fee is set to increase for each order segment a Forex Dealer Member (FDM) submits to NFA's Forex Transaction Reporting Execution Surveillance System which is named "Fortress". The Fortress system . . .

U.S. Brokers Well Prepared for End of SEC Retail Forex Extension Rule

25 May 2016, United States - Finance Magnates - The Securities and Exchange Commission has adopted a temporary measure in 2013 as an interim extension till 31st of July. The U. S. Securities and Exchange Commission (SEC) last week reminded brokers and dealers that are not registered as Retail Foreign Exchange Dealers (RFEDs) that after the 31st of July they will not be permitted to provide retail foreign exchange. In the aftermath of the financial . . .

NFA Issues New Zulutrade Complaint

1 May 2016, Chicago, IL, USA - AtoZ Forex - Zulutrade once the leader and pioneer of Copy Trading is under the spotlight as NFA issues new Zulutrade complaint for possibly violating some of the requirements such as failing to maintain minimum net capital and failing to implement the firm's anti-money laundering (AML) program. While the American Financial markets remain at the top of the global financial markets, NFA remains as one of the . . .

CFTC Extends Agreements with Three Canadian Provincial Securities Regulators

20 Apr 2016, Washington, DC, USA - LeapRate - The U. S. Commodity Futures Trading Commission (CFTC) announced today that its Chairman Timothy Massad has signed a Memorandum of Understanding (MoU) with three Canadian provincial securities regulators, regarding cooperation and the exchange of information in the supervision and oversight of regulated entities that operate on a cross-border basis in the United States and in Canada. The MoUs extend a . . .

CFTC Announces Additional Names, Including Land FX and Forex Broker Inc. to Its List of Foreign Entities that Illegally Solicit U.S. Residents

18 Apr 2016, Washingon, DC, USA - CFTC - Registration Deficient (RED) List on CFTC website Identifies companies operating illegally without being registered. As part of the U. S. Commodity Futures Trading Commission's (CFTC) ongoing efforts to help protect Americans from fraud, today the agency announced the addition of 23 new names to the RED List. Started in September 2015, the RED List - standing for "Registration Deficient" - contains the . . .

NFA Orders Plantation, Florida Retail Foreign Exchange Dealer IBFX (TradeStation) to Permanently Withdraw from NFA Membership

15 Mar 2016, Chicago, IL, USA - NFA - National Futures Association (NFA) has ordered IBFX, Inc. (IBFX), an NFA Member registered retail foreign exchange dealer and provisionally registered swap dealer (SD) located in Plantation, Florida, to permanently withdraw from NFA membership and from acting as a principal of an NFA Member. The Decision, issued by NFA's Business Conduct Committee (BCC), is based on a Complaint authorized by the . . .

CFTC Orders Florida-based IBFX, Inc. (f/k/a TradeStation Forex, Inc.) to Pay a $1 Million Penalty for Failing to Meet Minimum Capital Requirements

14 Mar 2016, Washington, DC, USA - CFTC - The Commodity Futures Trading Commission (CFTC) today issued an Order filing and simultaneously settling charges against Plantation, Florida-based IBFX, Inc. (IBFX), formerly known as TradeStation Forex, Inc. IBFX is a wholly owned subsidiary of TradeStation Group, Inc. and a CFTC-registered Retail Foreign Exchange Dealer (RFED). The CFTC Order requires IBFX to pay a $1 million civil monetary penalty . . .

NFA Imposes New Reporting Requirements On U.S Forex Dealers

10 Dec 2015, Chicago, IL, USA - Finance Magnates - The American National Futures Association (NFA) has announced today upcoming changes to forex dealer member (FDM) reporting requirements to assist in its monitoring. Starting January 2016 the NFA mandates FDMs to report additional information in the daily Forex Financial Report (FFR) and to add new line items to the supplementary information section of the monthly filing.

NFA Imposes New Cybersecurity Regulations

25 Oct 2015, Chicago, IL, USA - Finance Magnates - The newly approved information protection program includes several measures meant to prevent identity theft and hacking. Financial firms around the world are facing tougher and tougher challenges from determined and sophisticated cyber criminals. Only this month we have learned about a security breach at FXCM, data theft at Scottrade and a crippling DDos attack against IC Markets.

TradeKing Drops MB Trading's Dealer License, Left Only as an IB

12 Oct 2015, Charlotte, NC, USA - Finance Magnates - This is another step in the consolidation of the American market as MB Trading is dropping its RFED license. California-based multi-asset broker MB Trading has notified its clients today that the company will be consolidating its forex trading operations under TradeKing Forex. The Florida-based TradeKing Group acquired all of its former rival's assets back in August. At the time of the takeover, . . .

CFTC Adds Starfish FX and Trader's Way to RED List of Foreign Brokers Targeting US Clients

23 Sep 2015, Washington, DC, USA - LeapRate - US regulators have been very active recently in their continued crackdown on the retail forex and binary options sectors. We recently posted on the CFTC's adoption of tightened rules for Retail Forex Brokers. Now the U. S. Commodity Futures Trading Commission's (CFTC) has turned its focus abroad, with the publication of a 'RED List' of foreign brokers which have been targeting US clients. As part of . . .

CFTC Orders Forex Capital Markets, LLC to Pay More Than $843,000 for Supervision and Record-Production Violations and for Violating a Previous Commission Order

8 Sep 2015, Washington, DC, USA - CFTC - The U. S. Commodity Futures Trading Commission (CFTC) today filed and simultaneously settled charges against Forex Capital Markets, LLC (FXCM), a registered Futures Commission Merchant, for failing to diligently supervise its officers', employees', and agents' handling of accounts held at FXCM in the name of a fraudulent foreign currency exchange pool, Revelation Forex Fund, LP (RFF). RFF was operated . . .

CFTC Approves NFA Amended Rules to Better Protect Retail Forex Traders

27 Aug 2015, Chicago, IL, USA - Finance Magnates - The new rules require NFA forex dealer members to ramp up a range of risk management practices, including increasing capital. Following the Swiss National Bank surprise decision to scrap the floor under the EUR/CHF exchange rate, the National Futures Association (NFA) has introduced additional requirements for brokers providing foreign exchange services in the US. Forex Dealer Members (FDMs) of . . .

FXDD US Applies for Withdrawal of Introducing Broker License with the NFA

31 Jan 2015, Chicago, IL, USA - Finance Magnates - According to a corporate announcement made by FXDD Global, the firm's US unit has applied to withdraw its IB license due to the firm's concentration of efforts on its globally operating FXDD Global. After in May last year when FXDD US sold its retail customer accounts to FXCM, the company announced that it has applied for withdrawal of its introducing broker license with the National Futures . . .

NFA Fines New York Firm FXDirectDealer LLC $500,000 for Inadequate Anti-money Laundering Program and Failure to Supervise

10 Dec 2014, Chicago, IL, USA - NFA - National Futures Association (NFA) has ordered FXDirectDealer LLC (FXDD), an NFA Member and previously registered CFTC retail foreign exchange dealer located in New York City, to pay a $500,000 fine and operate solely as an NFA Member introducing broker (IB). The Decision, issued by NFA's Business Conduct Committee, is based on a Complaint and settlement offer submitted by FXDD. FXDD has been the . . .