New OTC Derivatives Proposal Could Include Forex Provisions
U.S. Treasury and CFTC Chairman Disagree Whether Forex Regulations Should Be Included in OTC Derivatives Proposal
On April 13, Senate Agriculture Committee Chairman Blanche Lincoln (D., Ark.) met with top U.S. Treasury officials to discuss over-the-counter (“OTC”) derivatives and the proposal she is putting together to regulate them. These proposed regulations will affect institutional players, who [...]
Failure to Respond Promptly to the NFA Could Result in Permanent Membership Ban
Florida CTA City Capital Management LLC Permanently Barred from NFA for Violating Compliance Rules
On May 7, the National Futures Association (NFA) announced the permanent membership bar of Naples, Florida-based commodity trading advisor (CTA) City Capital Management LLC (CCM) and its sole principal and associated person Jonathan Lee (Lee).
The NFA charged CCM with violating Compliance Rule [...]
Alpari Fined by FSA for Insufficient AML Procedures
UK’s Financial Services Authority (FSA) Fined Alpari £140,000 ($200,000) for Failure to Implement Proper Anti-Money Laundering (AML) Policies
On May 5, the FSA fined foreign exchange services firm Alpari (UK) Ltd for its failure to follow through on proper anti-money laundering policies established by both the FSA and Alpari itself.
In particular, the FSA cited the fact that [...]
CFTC Charges Helmut H. Weber with Forex Fraud; Update on Ronald W. Smith, Jr. Fraud Charges
On the Eve of New Forex Registration Requirements, CFTC Finds More Fraud
In two separate actions, CFTC charged Arizona resident Helmut H. Weber of Weber Capital Management with solicitation fraud and misappropriation of customer funds, and CFTC obtained a preliminary injunction against Virginia resident Ronald W. Smith, Jr. of Safeguard 3030 Investment Club in relation to [...]
GAIN Capital Holdings, Inc. Opens Hong Kong Office, Expands Asian Presence
GAIN Capital Announces New Hong Kong Office and White Label Agreement with Polaris Securities
GAIN Capital Holdings, Inc. (operator of well-known site forex.com) has expanded its presence in Asia by opening a new office in Hong Kong. It currently has offices in Tokyo and Seoul, as well as in New York, New Jersey, and London.
The CEO [...]
New IB Coalition Challenges Guaranteed Introducing Broker Requirement, Among Others
Forex IB Firms Form IB Coalition to Challenge CFTC Proposal, Cite Contradictions Between Futures and Forex Regulations
We recently wrote an article on the new guaranteed introducing broker (IB) proposed rule with regard to the CFTC’s Forex Proposal because we were curious as to why little was being said about this significant change for IBs. Evidently, [...]
Frontline Financial, Inc. Permanently Banned From NFA; Owner Charles G. Rice Must Withdraw from NFA for 5 Years
Dallas CPO/CTA Frontline Financial, Inc. & Owner Charles G. Rice Charged with NFA Compliance Violations
On February 18, NFA issued a press release detailing its settlement with Dallas-based commodity pool operators (CPOs) and commodity trade advisors (CTAs) Frontline Financial, Inc. (FFI), Frontline Advisors LLC (FAL), and Charles G. Rice (Rice). FFI and FAL agreed to be [...]
NFA Talks with CFTC about Proposed Forex Leverage Reduction
President of NFA Dan Roth and CFTC Commissioner Jill Sommers Discuss Leverage Proposal
On Friday, Dan Roth, the president and CEO of the National Futures Association met with CFTC Commissioner Jill Sommers regarding the proposed forex regulations. According to the text of the CFTC comment file regarding the meeting, the discussion primarily centered around the reduction [...]
Colorado CTA CFS Charged with Misusing Customer Funds, Submitting False Material to NFA, Failing to Supervise, Among Other Allegations
CFS Capital Management LLC and Principals Violate NFA Compliance Rules, Forced to Withdraw from NFA Membership
On June 30, 2009, NFA filed a formal Complaint against Colorado commodity trading advisor (CTA) CFS Capital Management LLC (CFS) and two of its principals, Andrew G. Elrod and Brian G. Elrod. In the Complaint, NFA alleged that CFS and [...]
Mallon P.C. Creates NFA Self-Exam Checklists for Forex CTAs, CPOs, and IBs
Forex CTAs, CPOs, and IBs Will Benefit From Mallon P.C.’s User-Friendly Self-Examination Checklists
The information in the following press release from hedge fund law firm Mallon P.C. applies equally to forex commodity trading advisors (CTAs), commodity pool operators (CPOs), and introducing brokers (IBs).
The full text of the Mallon P.C press release is reprinted below and can [...]