Last week, Squawkbox reported on an issue between retail FX provider FXCM and the Commodity Futures Trading Commission (CFTC). We have been asked by FXCM to clarify some of the points made in the article.
The CFTC was not a party to the Dickten case, it provided an adjudicatory forum in which the customer could present his claim. The CFTC never initiated any formal enforcement action against FXCM in connection with the Dickten matter and “never found FXCM in violation of any statute or regulations,” FXCM says.
FXCM has been registered with the CFTC since 2001 and the firm says that it is incorrect to state that it was challenging the CFTC’s authority. It has also asked Squawkbox to point out that since 2007 it has been implementing a “no-dealing desk”, which directly offsets every trade from a customer with a major bank or financial institution.
We are happy to provide this clarification.