The US Commodity Futures Trading Commission (CFTC) has issued an Order filing and settling charges against retail FX broker Oanda Corporation for violating certain capital, reporting, and supervision rules and invoked a fine of $500,000.
The order finds that, in or around October 2018 and during the period April 2019 to August 2019, Oanda failed at times to meet certain capital requirements applicable to retail FX dealers and Futures Commission Merchants (FCMs). Oanda failed to meet net capital requirements from April 26, 2019 to August 21, 2019 and made dividend payments on October 15, 2018, April 26, 2019, and May 28, 2019 in violation of the equity withdrawal restriction. Additionally, the firm failed to meet certain financial reporting requirements related to these violations. The order also finds that Oanda did not maintain adequate internal controls with respect to these financial and reporting requirements. Consequently, the firm failed to diligently supervise matters related to its business as a CFTC registrant.
The order recognises Oanda’s cooperation in the investigation and also notes that the CFTC’s Division of Enforcement found no indication that customers suffered losses as a result of the firm’s net capital and equity withdrawal restriction violations.
“The CFTC’s capital, reporting, and supervision requirements are critical to ensuring market integrity and the protection of customers,” says Division of Enforcement director James McDonald. “We will continue to be diligent in holding firms accountable for violating these regulations.”
Division of Swap Dealer and Intermediary Oversight director Joshua Sterling adds, “Capital requirements are a cornerstone of the regulatory framework governing CFTC-regulated intermediaries and we will continue to monitor firms for compliance with these important rules. We look forward to continuing to work with the Division of Enforcement when firms fall short of their financial obligations.”