NFA Fines Connecticut Firm Interactive Brokers $300,000 in Settlement of Two Complaints (with Mehta Comment)

The NFA has issued a $300,000 fine against Interactive Brokers ("Interactive"), a futures commission merchant, for, among other problems, violations of NFA Bylaw 1101. NFA Bylaw 1101 generally prohibits CFTC registrants from doing business with firms that should be, but are not, registered with the CFTC. In effect, it requires private firms to police each other's compliance with CFTC registration requirements.

Mehta Comment: Relevance of this matter is an NFA Member's compliance with NFA Bylaw 1101 (i.e., prohibition on NFA Member from doing business with a non-NFA Member that is required to be registered with the CFTC). Recently registered CPOs/CTAs are reminded to ensure that appropriate policies and procedures are in place in order to comply with NFA Bylaw 1101.

See: NFA Decision.See also: 2012 Complaint; 2013 Complaint.