August 07, 2020
NFA orders former Chicago, Ill. introducing broker Long Leaf Trading Group, Inc. and its former associated person James Alan Donelson to not reapply for NFA membership
August 7, Chicago—NFA has ordered Long Leaf Trading Group, Inc. (Long Leaf), a former NFA Member introducing broker located in Chicago, Ill., and its former president and associated person (AP) James Alan Donelson to not reapply for NFA membership or act as a principal of an NFA Member.
The Decision, issued by an NFA Hearing Panel, is based on a Complaint issued by NFA’s Business Conduct Committee (BCC) and a settlement offer submitted by Long Leaf and Donelson. Among other things, the Complaint alleged that Long Leaf and Donelson failed to observe high standards of commercial honor and just and equitable principals of trade by engaging in complex multi-legged option trading strategies that were geared more towards generating commissions for themselves than benefitting their customers. The Complaint also alleged that Long Leaf, acting through its former APs, used misleading sales solicitations, often directed towards inexperienced customers, which exaggerated profit potential and downplayed the risk of loss.