The National Futures Association ("NFA") permanently barred a number of firms based in the British Virgin Islands from membership.The firms were ordered to withdraw from NFA membership and the firms' principal was ordered not to register as an associated person or act as a principal of an NFA Member for four years. An NFA hearing panel found the firms had (i) used misleading promotional material that exaggerated profit potential, downplayed the risk of trading futures and included hypothetical results that were not identified as such, (ii) recommended and/or placed trades that maximized
A financial services firm was banned from operating as a futures commission merchant ("FCM") in light of findings by the NFA Business Conduct Committee. The committee found that the firm's risk management policy "failed to adequately assess and monitor the risks associated with the accounts of customers who trade in volatile markets." The firm carried accounts engaged in highly volatile options activities and failed to collect adequate margin or have adequate procedures to determine the level of the firm's risk. As a result, when markets moved against the firm's clients, the margin
Members who take "reasonable steps" to determine the registration and member status of previously exempt customers with whom they do business between January 1 and March 31 of 2016 will not be in violation of NFA Bylaws or Compliance Rules.
The NFA barred one of its members permanently from membership and from acting as the principal of an NFA member. The barred member is an introducing broker located in New York City.