CFTC fines Starberry for operating as unregistered broker
In March 2020 alone, Starberry executed more than 12,500 NYMEX WTI trades, which resulted in more than $86 million in profits for the foreign customer and $1,376,206.81 in commission and fees for Starberry.
The Commodity Futures Trading Commission filed and settled charges against Starberry Limited for acting as a futures commission merchant (FCM) without being registered.
Starberry placed orders on behalf of a foreign customer for NYMEX West Texas Intermediate (WTI) crude oil futures contracts without being registered as an FCM.
The firm is now required to pay a $1,376,206.81 civil monetary penalty and disgorge $1,376,206.81 in commission and fees it unlawfully earned by acting as an FCM without registration. Starberry benefited from a substantially reduced penalty for its “substantial cooperation”.
Acting Director of Enforcement Director Gretchen Lowe said, “The CFTC will continue to vigilantly investigate and prosecute those who act as FCMs without first registering.”
The broker-dealer accepted more than $400 million from a foreign customer and deposited that money in its proprietary trading account.
In March 2020 alone, Starberry executed more than 12,500 NYMEX WTI trades, which resulted in more than $86 million in profits for the foreign customer and $1,376,206.81 in commission and fees for Starberry.
