CFTC Hits FX Fraudsters
The Commodity Futures Trading Commission (CFTC) has revoked the Commodity Pool Operator and Commodity Trading Advisor registrations of Veruus Wealth Management (Veruus).
The CFTC warned Veruus on August 21, 2013, that it planned to revoke the company’s registrations on the basis that it has engaged in civil theft and conversion of investments in a Veruus-managed foreign exchange trading account.
The court in Denver – where Veruus is based – found the company liable for the theft and conversion of $339,517.79 in investor funds. The company failed to respond to this warning and so now the CFTC has revoked its CPO and CTA license.
The CFTC has also charged two individuals, Ron McCullough and David Mayhew, with fraudulently soliciting approximately $2.3 million from at least 11 individuals to trade leveraged or margined off-exchange foreign currency contracts.
Additionally, the CFTC Complaint alleges that McCullough and Mayhew misappropriated at least $1.6 million of their customers’ funds.
In the past week the CFTC has also fined Worth Asset Management $6.2 million for fraud, revoked the CTA license of System Capital and is seeking to revoke the registration of introducing broker iFinix Futures and the CPO license of Arista.
ASX and Bank of China Launch New RMB Settlement Service
ASX and the Bank of China have signed an agreement under which they will deliver renminbi (RMB) settlement services to the Australian and Chinese financial markets.
Planned to launch by the middle of the year, the firms claim the service will allow Australian companies to take or make payments with their Chinese investment and trading partners through a proven market infrastructure.
The Australia-China trade relationship was worth $120 billion last financial year, and the move is said to “mark another milestone in the internationalisation of the RMB”.
“ASX believes this new strategic relationship with the Bank of China will benefit both our countries, and provide a platform for the development of bigger and more diverse products and services in the RMB,” adds ASX managing director and CEO, Elmer Funke Kupper.
Kupper and Bank of China country head and general manager of the Sydney Branch, Shanjun Hu, co-signed the agreement in Sydney.
The key benefits of the new service include increased accessibility, allowing Australian companies to use RMB as a settlement currency in their cross-border transactions with trading and investment partners in China.
It may also lower costs and risk as Australian companies trading with China will be able to pay and receive RMB, eliminating exchange rate risk and the cost of conversion.