CFTC Fines Firm for a Series of Minimum Net Capital Deficits, Untimely Notice and a Failure to Supervise That Resulted Partly from Technology Failures

The CFTC issued an order simultaneously filing and settling charges against IBFX, Inc., also known as Tradestation Forex, Inc. ("IBFX"), a Retail Foreign Exchange Dealer, for failing to meet the minimum net capital requirements on three separate occasions, failing to timely report one of the minimum net capital deficits, and failing to supervise its employees and agents diligently by establishing, implementing and executing an adequate supervisory structure and compliance programs.

In the third instance of IBFX's failing to meet capital requirements, the CFTC found that the software installed by IBFX, which was not fully tested prior to installation, resulted in uncovered positions requiring charges to capital. In this instance, CFTC explained that, in addition to failing to test the new software, IBFX lacked a system to timely detect erroneous trades generated by the new software, and did not accurately assess and reverse the errors in evidence due to its lack of diligent supervision, which violated CFTC Rules.

See: CFTC Order.