For Immediate Release
September 18, 2013
For more information contact:
Larry Dyekman (312) 781-1372, ldyekman@nfa.futures.org
Karen Wuertz (312) 781-1335, kwuertz@nfa.futures.org
NFA
fines New York forex firm FXDirectDealer LLC $1.1 million and orders
the firm to pay $1.8 million in restitution to customers
September
18, Chicago - National Futures Association (NFA) has issued a $1.1
million fine and a $1.8 million restitution order against FXDirectDealer LLC
(FXDD), a registered futures commission merchant Forex Dealer Member of
NFA located in New York City. The Decision, issued by NFA's Hearing
Committee (Committee), is based on Complaints filed on June 29 and
October 23, 2012 and a settlement offer submitted by FXDD.
The June 29 Complaint charged FXDD with using asymmetrical price
slippage settings that favored FXDD over its customers; failing to
supervise the trade integrity of the firm's electronic trading systems;
failing to maintain complete and accurate records; and failing to review
the use of promotional material. The June Complaint also charged FXDD
with making improper price adjustments in customers' accounts;
converting customer funds; willfully submitting misleading information
to NFA and others; and failing to treat all customers equally when
giving price adjustments.
In addition, the June Complaint charged FXDD with failing to
implement an adequate anti-money laundering (AML) program; failing to
develop and implement adequate screening procedures to determine whether
persons and entities with whom FXDD intended to do forex business were
required to be registered with the Commodity Futures Trading Commission
(CFTC) and Members or Associates of NFA.
The October 23 Complaint charged FXDD with failing to implement an
adequate AML program and failing to adequately supervise the firm's AML
program.
As part of the settlement offer, FXDD agreed to pay restitution in
the amount of $1,828,261 to FXDD customers who experienced unfavorable
price slippage on "limit-fill-or-kill" trades placed in their accounts
from December 10, 2009 until June 29, 2011.
In addition, FXDD will pay a fine of $1.1 million, of which $914,131
is attributable to FXDD's unfavorable price slippage practices. In a
related action taken by the Commodity Futures Trading Commission, FXDD
will pay an additional penalty of $914,131 to the CFTC.
FXDD neither admitted nor denied the allegations.
The complete text of the June 29 Complaint, October 23 Complaint and Decision can be viewed on NFA's website (www.nfa.futures.org).
http://www.nfa.futures.org/news/newsRel.asp?ArticleID=4299