CFTC Orders FXDirectDealer, LLC to Pay Penalty to Settle Minimum Financial Requirement Rule Violations

The CFTC issued an Order filing and settling charges with FXDirectDealer, LLC ("FXDD"), a registered retail foreign exchange dealer ("RFED") and futures commission merchant ("FCM"), for failing to comply with minimum financial requirements for RFEDs and FCMs.Under CFTC foreign currency ("forex") contracts rules, RFEDs and FCMs that offer or engage in retail forex transactions are required to maintain adjusted net capital of $20 million, or more in certain circumstances. According to the CFTC Order, FXDD did not maintain its required adjusted net capital during at least 18 separate months between November 2010 and December 2012. The Order imposes a $275,000 civil monetary penalty and a cease and desist order against FXDD for its violations.

See: CFTC Order against FXDD; CFTC Press Release.See also: CFTC and NFA Settle Charges against FXDirectDealer, LLC (September 18, 2013); NFA Takes "Emergency Enforcement Action" against New York FX Dealer Member (December 10, 2012).