NFA US

NFA has ordered Chicago, Illinois swap dealer Member StoneX Markets LLC (Stone) to pay a $1,000,000 fine. The Decision, issued by NFA's Business Conduct Committee (BCC), is based on a Complaint issued by the BCC and a settlement offer submitted by Stone. In the settlement offer, the firm neither admitted nor denied the allegations in the Complaint. In its Decision, the BCC found that Stone violated NFA Compliance Rule 2-4 by failing to provide timely and complete disclosure to its counterparties that the firm was not calculating initial margin (IM) according to its customary procedures; violated NFA Compliance Rule 2-49(a) by failing to maintain and enforce an adequate risk management...

NFA has ordered Gain Capital Group LLC (Gain) to pay a $700,000 fine. Gain, which does business as FOREX.com, is a registered retail forex dealer and futures commission merchant Member of NFA headquartered in Warren, New Jersey. The Decision, issued by NFA's Business Conduct Committee (BCC), is based on a Complaint issued by the BCC and a settlement offer submitted by Gain and Alexander Robert Bobinski, Jr. (Bobinski), an associated person and principal of the firm and Associate Member of NFA. In the settlement offer, the firm and Bobinski neither admitted nor denied the allegations in the Complaint. In its Decision, the BCC found that Gain...

NFA has ordered Stage 5 Trading Corp. (Stage 5) to pay a $75,000 fine. Stage 5 is an introducing broker (IB) Member of NFA located in Chicago, Illinois. The Decision, issued by NFA's Business Conduct Committee (BCC), is based on a Complaint issued by the BCC and a settlement offer submitted by Stage 5, in which the firm neither admitted nor denied the allegations in the Complaint. The BCC's Complaint charged Stage 5 with doing business with an unregistered forex IB and using a website that did not distinguish clearly between Stage 5 and the unregistered forex IB. The Complaint...

NFA has ordered Empire Energy Group LLC (Empire Energy), a CFTC-registered introducing broker and former NFA Member located in Houston, Texas, not to reapply for membership or act as a principal of an NFA Member at any time in the future. NFA also ordered Mark Fairchild, a principal and associated person of Empire Energy and former NFA Associate, not to reapply for NFA membership or act as a principal of an NFA Member for five years and to comply with other requirements if he seeks NFA membership or principal status following the five-year period. The default Decision, issued by NFA's...

NFA has ordered Direct Hedge Danmark Fondsmaeglerselskab AS (Direct Hedge) to pay a $70,000 fine. Direct Hedge is a registered introducing broker and approved swap firm Member of NFA located in Hellerup, Denmark. The Decision, issued by an NFA Hearing Panel, is based on a Complaint issued by NFA's Business Conduct Committee and a settlement offer submitted by Direct Hedge, in which the firm neither admitted nor denied the allegations in the Complaint. The Complaint alleged that Direct Hedge failed to keep required communications records, in violation of NFA Compliance Rule 2-10(a) and failed to register an individual as an...

NFA's Board of Directors approved the appointment of Dale Spoljaric as Vice President, Capital & Exams at its August meeting. "We are extremely pleased to promote Dale to this important leadership position," says NFA's CEO and President Thomas Sexton. "With his significant regulatory experience and expertise in futures commission merchant and swap dealer capital, segregation and margin, Dale will play an important role leading our rigorous regulatory oversight programs." Mr. Spoljaric has been with NFA for close to ten years. He has served as a Managing Director in both NFA's Futures Compliance and OTC Derivatives Compliance departments. Prior to joining NFA,...

NFA has permanently barred Yas Castellum LLC (Yas), a former NFA Member and commodity pool operator located in Denver, Colorado, and Marcus Brisco, its former principal and associated person, from membership and from acting as a principal of an NFA Member. The default Decision, issued by NFA's Business Conduct Committee (BCC), is based on a Complaint issued by the BCC and Yas and Brisco's failure to file an Answer. The BCC found that Yas failed to operate its commodity pool as a separate legal entity, failed to receive funds in the name of its commodity pool and commingled pool funds...

NFA has ordered Makor Securities London Ltd. (Makor) to pay a $375,000 fine.  Makor is a former introducing broker (IB) and current provisionally registered swap dealer Member of NFA located in London, U.K. The Decision, issued by NFA's Business Conduct Committee (BCC), is based on a Complaint issued by the BCC and a settlement offer submitted by Makor, in which the firm neither admitted nor denied the allegations in the Complaint. The BCC's Complaint alleged that Makor, in its capacity as an IB, failed to disclose to NFA intra-month transfers of assets with an affiliate between August 2021 and February...

Dear Mr. Kirkpatrick: National Futures Association (NFA) appreciates the opportunity to comment on LedgerX, LLC d/b/a FTX US Derivatives' (FTX) request that the Commodity Futures Trading Commission (CFTC or Commission) amend its derivatives clearing organization (DCO) registration order to allow FTX to clear non-intermediated margined derivatives products for both retail and institutional participants.1 The Commission's request for comment raises important issues about how non-intermediated markets may operate within the current Congressionally established regulatory structure for the derivatives industry. We commend the Commission for deliberately and fully considering these issues and for seeking the views of market participants and the trading...

NFA has ordered Connecticut-based futures commission merchant and forex dealer Member Interactive Brokers LLC to pay a $250,000 fine. The Decision, issued by NFA's Business Conduct Committee (BCC), is based on a Complaint issued by the BCC and a settlement offer submitted by Interactive Brokers, in which the firm neither admitted nor denied the allegations in the Complaint. In its Complaint, the BCC alleged that Interactive Brokers canceled retail customer forex orders contrary to the reasons permitted under NFA Compliance Rule 2-43(a)(1) and failed to adequately supervise its employees in the conduct of their forex activities on behalf of the...

NFA has ordered Salt Lake City, Utah introducing broker BTU Brokers, Inc. (BTU) and its principal and associated person (AP) Christopher Anthony Ridgeway to jointly pay an $80,000 fine. The Decision, issued by NFA's Business Conduct Committee (BCC), is based on a Complaint issued by the BCC and a settlement offer submitted by BTU and Ridgeway, in which they neither admitted nor denied the allegations in the Complaint. In its Complaint, the BCC alleged that BTU and Ridgeway failed to comply with NFA Registration Rules and failed to diligently supervise the operations and APs of BTU, in apparent violation of...

NFA has ordered New York, N.Y. swap dealer Member Goldman Sachs & Co., LLC (Goldman) to pay a $2,500,000 fine. The Decision, issued by NFA's Business Conduct Committee (BCC), is based on a Complaint issued by the BCC and a settlement offer submitted by Goldman, in which it neither admitted nor denied the allegations. The Complaint alleged that Goldman did not collect or post variation margin (VM) on uncleared swaps with counterparties that were covered by the CFTC VM regulations. The Complaint also alleged that Goldman did not implement policies and procedures reasonably designed to ensure compliance with its pre-trade...