CFTC Fines Introducing Broker for Supervisory Violations

The CFTC settled charges against Foremost Trading LLC, a registered Introducing Broker, for violating CFTC Rule 166.3 by failing to diligently supervise the handling of certain trading accounts that had been referred to the firm by three entities that mass-marketed trading strategies.According to the CFTC, Foremost Trading had received a significant number of complaints from individual investors that the trading strategies were sold by means of fraudulent advertising, and that Foremost Trading ignored these complaints in continuing to open new accounts for clients referred to them by the entities that had mis-marketed such trading strategies.

See: CFTC Order Against Foremost Trading; CFTC Press Release.