CFTC fines OANDA over violating capital, reporting, and supervision rules

Maria Nikolova

The order requires OANDA to pay a $500,000 civil monetary penalty and to cease and desist from any further violations of CFTC regulations.

The United States Commodity Futures Trading Commission (CFTC) today issued an order filing and settling charges against retail FX broker OANDA Corporation for violating certain capital, reporting, and supervision rules.

Specifically, OANDA failed to meet minimum net capital requirements, violated the equity withdrawal restriction in making dividend payments on three occasions, failed to meet certain reporting requirements, and failed to diligently supervise matters related to its business as a CFTC registrant. The order requires OANDA to pay a $500,000 civil monetary penalty and to cease and desist from any further violations of CFTC regulations.

The CFTC 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 futures commission merchants offering or engaging in retail Forex transactions and/or to retail foreign exchange dealers. 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.

Also, OANDA failed to meet certain financial reporting requirements related to these violations.

In addition, 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 recognizes OANDA’s cooperation in the investigation of this matter. The order also notes that the Division of Enforcement found no indication that customers suffered losses as a result of the firm’s net capital and equity withdrawal restriction violations.

Read this next

Metaverse Gaming NFT

Despite crypto winter, Fastex grabs $23.2 million in Fasttoken token sale

Fasttoken, part of the Fastex web3 ecosystem, has secured $23.2 million in financing through the private and public token sales of its native cryptocurrency Fasttoken (FTN).

Digital Assets

Iran to repay Russian debts in gold-backed stablecoins

A high-ranking member of the Russian parliament confirmed reports that his country was in talks with Iran to create a stablecoin for foreign trade settlements, to replace the dollar, ruble and Iranian rial.

Digital Assets

SEC denies Cathie Wood’s bitcoin ETF for second time

The approval of a regulated crypto derivative is still looking far less likely, as the US regulators have once again denied Cathie Wood’s application for a long-awaited spot bitcoin exchange-traded fund (ETF).

Executive Moves

Pavel Spirin promoted to Scope Markets CEO following Rostro acquisition

Belize-based FX and CFDs brokerage Scope Markets has promoted Pavel Spirin to take on an expanded role as the company’s chief executive officer. He replaces the outgoing CEO Jacob Plattner, who has also been a major shareholder since he resigned his position as managing director at GKFX.

Retail FX

Public.com goes all-in on alternative investing, launches Rare Sneaker Portfolio

“The concept of curated Portfolios means that our members will be able to invest in categories like art, trading cards, royalties, and real estate without needing to become subject matter experts on individual assets.”

Industry News

State Street taps AWS and Microsoft for cloud and infrastructure solutions

“By standardizing and simplifying our technology operating model, we will be able to more quickly deploy client environments and launch new products and services, while continuing to enhance the resiliency of our technology environment and our business operations.”

Institutional FX

Bitpanda launches Investment-as-a-Service business for banks, fintechs, online platforms

“Financial institutions today have to ask themselves how they aim to cater the increasing demand for modern investing solutions. Building these Individually, means a high startup cost, and products that are often outdated before they are even launched.”

Institutional FX

Options expands market data feeds after partnership with Tools for Brokers

“Our integration with ACTIV Financial marked the beginning of a new era in market data availability and infrastructure. Our teams have come together to provide unparalleled, fully managed market data services alongside Options’ global connectivity and infrastructure.”

Industry News

Recruitment in financial services sector buoyant despite planned mass layoffs

“It remains to be seen what impact this will have on hiring levels within the financial services arena this quarter”, said APSCo, regarding the expected mass layoffs within the financial services sector in England & Wales. 

<