CFTC Charges Firm with Violating Financial Requirements

The CFTC issued an Order simultaneously filing and settling charges against a CFTC-registered retail foreign exchange dealer ("RFED") and futures commission merchant ("FCM") for failing to meet the minimum financial requirements for RFEDs and FCMs, to supervise its employees and to comply with a prior CFTC administrative order.

The CFTC found that the firm had violated the prior Order by being undercapitalized for 41 days between September and December of 2013. Additionally, the recent CFTC Order found, the firm was undercapitalized during another period of 96 days and violated CFTC minimum financial requirements by making three prohibited equity withdrawals between January and February of 2014. According to the Order, these violations were the result of an inadequate supervisory system.

See: CFTC Order; CFTC Press Release. Related news: CFTC Orders FXDirectDealer, LLC to Pay Penalty to Settle Minimum Financial Requirement Rule Violations (September 30, 2013).