CFTC Orders a Registered FCM to Pay $400,000 Penalty for Customer Account Deficiencies and Supervision Failures

The CFTC entered an Order requiring an FCM to pay a $400,000 civil monetary penalty for the failure to properly handle, monitor, and report the customer funds that it maintained, and for failure to supervise its officers, employees and agents. The Firm did not comply with various reporting or notification requirements, or with requirements related to audits and financial statements. Additionally, the Order's findings include: (1) the failure to maintain a separate account to cover its obligations to U.S. customers trading futures and/or options on foreign exchanges; (2) improperly holding non-customer and proprietary funds in the same trading account from 2007-2011; (3) the failure to obtain bank letters acknowledging that the funds deposited into certain accounts were customer funds, as required on several occasions; (4) the failure to timely notify the CFTC of violations and material inadequacies brought to its attention by its CPA; and (5) the failure to maintain and produce certain business records.

View Order in full here (links externally to CFTC website).See also: Press Release.