IB Settles With NFA Over Failure to Register Non-U.S. Employees

An introducing broker settled NFA claims that its overseas employees brokered trades for U.S. customers without proper registration.

The introducing broker is an NFA member based in London. During a 2024 exam, the NFA found that 14 of the firm's non-U.S. employees (13 in London and 1 in Dubai) in the firm's energy division solicited and accepted orders from U.S. customers without registering with the CFTC or fulfilling NFA requirements. By failing to ensure that its employees followed the registration rules, the firm violated NFA Bylaw 301(b) (Requirements and Restrictions) and NFA Compliance Rule 2-9(a) (Supervision).

The firm agreed to pay a $350,000 fine.

The NFA said the firm paid a $250,000 fine in 2022 for the same violation.