CFTC and unregistered FX broker JAFX reach prospective settlement
It is anticipated that the approval process of the proposed consent order may take 60 to 90 days.
The United States Commodity Futures Trading Commission (CFTC) appears to be achieving progress in its action against unregistered FX broker JAFX, Ltd. aka JAFX, EOOD.
Documents filed with the Utah District Court earlier this week and seen by FinanceFeeds indicate that the US regulator and JAFX are close to a settlement.
Counsel for the CFTC and JAFX have engaged in good-faith discussions concerning a negotiated resolution of the remaining issues raised in the Commission’s Complaint and the Consent Order of Permanent Injunction and Other Equitable and Statutory Relief. As a result, the parties have reached a prospective settlement of the remaining issues in the Initial Consent Order, subject to review and approval by the full Commission. It is anticipated that the approval process of the proposed Supplemental Consent Order by the full Commission may take 60 to 90 days.
The parties in the lawsuit jointly requested that the Court stay all deadlines of the Court’s Scheduling Order pending final approval of the proposed Supplemental Consent Order. On April 21, 2020, Magistrate Judge Dustin B. Pead granted the motion. All deadlines are stayed until further notice.
Let’s recall that the CFTC charges JAFX, an offshore company claiming to operate from St Vincent and the Grenadines and Bulgaria, with violating the Commodity Exchange Act and Commission Regulations.
The CFTC Complaint against the broker says that, beginning in at least September 2016, JAFX has offered retail Forex services to customers in the United States. The entity has never been registered as a retail foreign exchange dealer (RFED) or in any other capacity with the CFTC.
The CFTC notes it has not received any application from JAFX. The US regulator alleges that JAFX operates as an unregistered foreign exchange dealer and has failed to provide a disclosure statement.