Complaint That FCM Fails to Monitor Accounts for Unregistered Pools and FCMs

The CFTC complaint alleges that the firm (i) opened accounts for a number of improperly unregulated commodity pools and (ii) allowed an introducing broker to hold what was in effect on omnibus account for underlying accounts of the introducing broker, with the result that the introducing broker was really functioning as an unregistered futures commission merchant (IBs are not allowed to custody client assets). This is at least the second recent disciplinary action (see link to prior action below) in which an FCM has been sanctioned for allowing one of its customers to improperly aggregate trades of third parties, effectively allowing such customer to act as an unregistered FCM.

View complaint in full here (links externally to NFA website). See also: Prior disciplinary action.