Another attempt by Effex Capital to challenge ruling in NFA lawsuit fails

Maria Nikolova

Effex Capital has failed to secure a review of the Appeals Court ruling in a lawsuit about NFA’s press releases regarding regulatory actions against FXCM.

The United States Supreme Court has dashed yet another attempt by Effex Capital, the company whose name was embroiled in the scandal around FXCM’s exit from the US retail FX market, to review the outcome of the case it brought against the National Futures Association (NFA).

Let’s recall that, in its initial lawsuit against NFA, Effex sought injunctive relief, asking for an order requiring the NFA to remove the FXCM Settlement Documents from its website, to delete all references to Effex, or, alternatively, to provide Effex with a “name clearing hearing.” It further requested an order compelling the NFA to “issue a new press release stating: (a) NFA did not make any findings against Effex or Dittami; (b) Effex was not a de facto dealing desk of FXCM; (c) Effex was not controlled by FXCM; and (d) FXCM was not ordered to make any customer restitution.” Effex also asked for money damages of $10,000,000 for lost profits and to redress its constitutional injury.

According to Effex Capital, NFA had defamed it in documents related to a settlement between the NFA and FXCM. In August 2019, the Court of Appeals sided with the District Court in that Effex Capital had not exhausted all administrative remedies available to it before taking NFA to Court.

On September 17, 2019, Plaintiffs-Appellants Effex Capital, LLC and its CEO John Dittami filed a petition for a rehearing en banc. This petition was denied.

Effex tried to take the matter to the Supreme Court. A petition for a writ of certiorari was filed on December 31, 2019 and placed on the docket January 3, 2020. A writ of certiorari orders a lower court to deliver its record in a case so that the higher court may review it.

On February 24, 2020, the Supreme Court issued an order regarding Effex’s petition. The document, seen by FinanceFeeds, simply states:

“The Court today entered the following order in the above-entitled case: The petition for a writ of certiorari is denied”.

Read this next

Digital Assets

Binance executives sue Nigerian authorities over rights violation

Two senior executives from Binance have filed a lawsuit against against Nigeria’s national security adviser’s office and its anti-corruption agency, alleging violations of their fundamental rights.

Retail FX

Banxso announces 8.7% interest rate on deposits in South Africa

“With Banxso, they can enjoy the benefits of both worlds – earning competitive interest and having the freedom to trade, all within the same platform.”

Industry News

FINRA to publish transaction details in U.S. Treasury securities

“Consistent with our longstanding practice, FINRA is introducing greater transparency in a calibrated and careful manner, benefiting liquidity and resilience in this critical market while also mitigating potential information leakage concerns.”

Institutional FX

OpenYield launches “cheap and easy” fixed income trading for brokers

“We’re on a mission to make bonds cheap and easy to trade, and are excited about the opportunity to build generational capital markets infrastructure.”

Digital Assets

Sumsub and Mercuryo publish a guide for VASPs: “Mastering Travel Rule Compliance”

“At Sumsub, we’ve concentrated our efforts on filling the gap in understanding the complexity of Travel Rule regulation and helping organizations find the best solution to stay safe and compliant while minimizing costs and avoiding potential risks of non-compliance. This guide we created with Mercuryo, our trusted partner, is the ultimate navigation tool all VASPs can consult.”

Digital Assets

Bitget Wallet Leads with Record Swap Volume & New Crypto Innovations

This week, Bitget Wallet achieved a milestone by surpassing Metamask with a record 388,757 Swap order transactions, securing the global lead. The significant 7-day trading volume, almost 68,000 more than its rival, underscores its liquidity and user trust. This robust activity signals Bitget Wallet’s prominent role and reliability in the dynamic crypto market.

Digital Assets

Embarking on a Digital Currency Journey

Imagine you’ve stumbled upon a treasure map, leading you to untold riches hidden in the vastness of the internet. Instead of gold coins and jewel-encrusted goblets, this treasure comes in the form of digital currencies, the modern-day loot coveted by many.

Reviews

Traders Union Experts Share The Trading Analyst Review For 2024

Navigating options trading in rapidly shifting markets poses a considerable challenge. This is where options trading alert services become invaluable. They aid traders in keeping abreast of evolving opportunities and market trends. In this assessment, Traders Union experts scrutinize The Trading Analyst alert service to ascertain its efficacy. 

Digital Assets

BlockDAG’s Presale Achieves $9.9M: Aiming For A 5000-Fold ROI As Cardano’s Price Rises And Fantom Launches Sonic

Explore Cardano’s surge, Sonic’s efficiency, and why BlockDAG’s growth makes it the top crypto choice. A deep dive into the future of blockchain investments.

<