Recent Issues with NFA Annual Questionnaire | Forex Law Blog
As we discussed in an earlier post on NFA Annual Questionnaire, NFA Member Firms are required to complete the questionnaire on an annual basis. The information helps the NFA in a variety of ways and the NFA encourages members to update their questionnaire on a regular basis, although firms are only required to complete it, at a [...]
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 [...]
Updates to BSA E-Filing System for FinCEN Suspicious Activity Reports
FCMs and IBs Can Use BSA E-Filing System To File Several FinCEN Forms, Namely Suspicious Activity Reports
FinCEN (Financial Crimes Enforcement Network) recently improved its online BSA (Bank Secrecy Act) e-filing system. The security-enhanced site can be used for free and allows users (such as FCMs and IBs) to submit FinCEN forms more efficiently. Your firm’s [...]
CFTC Seeks Public Comment on Possible Changes to Regulations for Investment of Funds Deposited with Clearing Organizations and Futures Commission Merchants
The Commodity Futures Trading Commission (CFTC) has approved for publication in the Federal Register an advance notice of proposed rulemaking seeking public comment on possible changes to its regulations regarding the investment of customer funds segregated pursuant to Section 4d of the Commodity Exchange Act and funds held in an account subject to Regulation 30.7.
Regulation [...]
CFTC Charges Florida Resident Michael J. Riolo and His Two Companies with Fraud in Alleged Multi-Million Dollar Foreign Currency Scam
The U.S. Commodity Futures Trading Commission (CFTC) today charged Michael J. Riolo of Boca Raton, Florida, and two companies he controls and owns, LaSalle International Clearing Corporation and Sterling Wentworth Currency Group, Inc., with fraudulently soliciting and receiving funds from members of the general public in an off-exchange foreign currency (forex) scam and providing their [...]
Delaware Resident Kenneth Branch and his company, Cocoon Trade, Inc., Ordered to Pay More than $1.5 Million in Restitution and Penalties in CFTC Commodity Pool Fraud Action
The U.S. Commodity Futures Trading Commission (CFTC) announced today the entry of a Consent Order of Permanent Injunction against Kenneth L. Branch (Branch) of New Castle, Delaware and a Default Judgment Order (Default Order) against Cocoon Trade, Inc (Cocoon). The Orders require Branch and Cocoon collectively to pay $632,787 in restitution to defrauded customers and [...]
CFTC Extends Public Comment Period on Concept Release Regarding Review of Exemptions for Swap Dealers
The Commodity Futures Trading Commission (CFTC) is extending the public comment period on the concept release regarding review of exemptions for swap dealers.
The comment period for this request is set to expire on May 26, 2009, but based on several public requests for an extension, the Commission is extending the comment period for an additional [...]
Forex Hedge Fund Information and Resources
Many forex professionals have experienced a great deal of success trading and investing in the forex markets. These professionals, however, often aren’t sure where they should go for great information on forming a forex hedge fund. We have compiled the resources below for forex managers.
How to Start a Forex Hedge Fund
Once a forex manager is [...]
NFA Interpretive Notice Re: Review of Promotional Material (NFA Rule 2-29)
This article provides an overview of an interpretive notice to NFA Compliance Rule 2-29 which applies to current NFA Members (generally commodity pool operators and commodity trading advisors). In this interpretive notice the NFA outlines its review program for promotional materials submitted by NFA members prior to the first use of the promotional materials. Generally [...]
Forex Law Question – Forex Managers and the Series 7 Exam
Question: If I trade spot forex in a fund structure, do I need a Series 7 exam license?
Answer: If a hedge fund manager trades in the spot off-exchange foreign currency (forex) markets and is not associated with a broker dealer, then the investment activities of the manager do not require a series 7 exam license.