NFA Notice of Member Responsibility Action to AlphaMetrix LLC
The National Futures Association ("NFA") issued a notice to AlphaMetrix LLC ("AlphaMetrix"), a registered CPO, CTA and NFA Member, that the NFA has taken Member Responsibility Action against AlphaMetrix for violations of Compliance Rule 2-45 ("Prohibition of Loans by Commodity Pools to CPOs and Affiliated Entities"). &
According to the notice, the action is deemed necessary to protect AlphaMetrix's pool participants because AlphaMetrix withdrew management and incentive fees from its various pools that were earned and owed to third-party money managers. Despite AlphaMetrix's having fee rebate agreements with third-party money managers and participants that called for their fees to be reinvested, AlphaMetrix did not reinvest approximately $600,000 of these fee rebates, impacting the pools' net asset values.