Tag: Nfa

Nfa

Wells Fargo Fined Over Controversial Burger King FX Trade

Already facing unfair dismissal actions and having paid one fine, Wells Fargo has been further sanctioned by the US Commodity Futures Trading Commission (CFTC) over its actions during the USD/CAD trade to hedge Tim Hortons’ purchase of Burger King. Having paid the US National Futures Association $2.5 million in August, Wells Fargo has now been […]

Wells Fargo Pays Fine to Close FX Investigation

The US National Futures Association (NFA) has announced that Wells Fargo has agreed to pay $2.5 million to settle charges against it relating to an FX transaction that is still the subject of legal actions elsewhere. The bank neither admitted nor denied the charges in the Complaint, although as part of the settlement it acknowledges […]

Gain Capital Fined Over Customer Order Malfunction

The US National Futures Association (NFA) has fined Gain Capital $50,000 for “failing to favourably adjust all customer orders adversely impacted by a recurring malfunction” in its e-platform. Gain neither admitted nor denied the charges and proposed to settle the case by paying the fine. The charges related to trade data submitted to NFA in […]

Trading Firms Cry “Last Look” in the Futures Market

As a futures exchange proposes a new speed bump mechanism, a number of market participants are coming out in opposition to it. Some of the arguments they’re making will sound familiar to those in the FX markets, says Galen Stops. On February 1 the Intercontinental Exchange (ICE) put the cat amongst the proverbial pigeons by […]

Mizuno Fined $900,000 by NFA

The US National Futures Association (NFA) has ordered Mizuho Capital Markets to pay a $900,000 fine for failing to adequately assess the risks of its uncleared swaps.
The Decision, issued by NFA’s Business Conduct Committee (BCC), is based on a Complaint issued by the BCC and a settlement offer submitted by Mizuho Capital, which neither admitted nor denied the allegations.
The BCC found that Mizuho Capital used inadequate processes to assess the risks of its uncleared swaps and back test, benchmark and validate its margin model.

New Systematic Currency Fund Launches

Roger Boehler and Kevin Nay Yaung have launched a new currency fund called Limmat Currency Partners (LCP).

LCP is headquartered in Westport, Connecticut, with Boehler serving as the firm’s CEO and Yuang operating as a general partner.

According to the firm’s website: “The Limmat Currency Partners (LCP) LLC investment program applies a range of quantitative and systematic techniques to the most liquid currencies in the global foreign exchange markets. We use transparent and robust investment inputs combining momentum, relative value and risk parity elements in a clearly defined repeatable process.”

LCP looks to approach the currency markets by combining algorithmic programming, unbiased and robust trade entry and exit signals and a rigorous risk management framework. The firm is registered as a Commodity Trading Advisor (CTA) with the US Commodity Futures Trading Commission (CFTC) and is a member of the National Futures Association (NFA).

NFA Submits Updates of FX Disclosure Rules to CFTC

The US National Futures Association (NFA) has submitted a letter to the Commodity Futures Trading Commission updating its proposed rules for the disclosure of FX trading costs to customers.
NFA says it the proposed rule is aimed at providing retail FX customers with greater transparency regarding the costs associated with their transactions. In adopting the amendment, NFA says it recognises that its current forex dealer members (FDM) operate using one of two business models, and that the costs associated with a transaction may differ depending on the business model used.

Questions, Questions, Questions

FXCM has known its share of controversy in recent years and now the firm has been barred from operating in the US. Profit and Loss staff report on an issue that has triggered another round of introspection in the FX industry.

Just over two years after staving off bankruptcy due to losses resulting from the Swiss National Bank’s decision to unpeg the Swiss franc, FXCM has been forced to withdraw from operating in the US, changed its name and seen its two principals step down from the business.

The unravelling of FXCM has impacted across the FX industry with questions being asked around the effectiveness of self-regulation, how the Global Code of Conduct could deal with a repeat offence, and how the industry moves forward in an atmosphere of mistrust?

Last Men Standing

FXCM’s forced exit from the US leaves only two major retail OTC FX-focused brokerages in the market. Galen Stops talks to the CEOs of these firms about what this means for the industry.

“The retail foreign exchange market has suffered a less than exemplary reputation for some time now,” concedes Vatsa Narasimha, CEO of Oanda.

The latest blow to the industry’s reputation comes as the US Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA) concluded that FXCM had defrauded its US customers, ordering it to withdraw from doing business in the country and fining the firm and its founding partners a total of $7 million.