FCM Settles Case Involving Supervision and Record-Production Violations

The CFTC simultaneously filed and settled charges against a registered Futures Commission Merchant ("FCM") for "failing to diligently supervise its officers', employees', and agents' handling of accounts held in the name of a fraudulent foreign currency exchange pool."

The CFTC found that despite the FCM's awareness of warning signs that a foreign currency exchange pool acted improperly, it failed to identify or report those warning signs in violation of its own compliance procedures.