CFTC wants TFS-ICAP senior managers to respond to complaint in flying & printing case

Maria Nikolova

In response to the CFTC’s request, New York Judge gives Dibb and Woolfenden several days to respond to the complaint in the case.

Jeremy Woolfenden, former Global Head of Emerging Markets broking at TFS-ICAP, and Ian Dibb ex-CEO of TFS-ICAP, are under increased pressure to respond to the complaint launched by the United States Commodity Futures Trading Commission (CFTC) against them at the New York Southern District Court.

The CFTC Complaint alleges that, from approximately 2008 through 2015, brokers at TFS-ICAP offices in the United States and the United Kingdom attempted to deceive and deceived their clients by engaging in the practices of communicating to them fake bids and offers and fake trades in the foreign exchange options market. The CFTC Complaint alleges that the practices, known as “flying prices” and “printing trades”, were a core part of TFS-ICAP’s broking business.

Now, the CFTC believes that Dibb and Woolfenden have to officially respond to the complaint in this matter.

Counsel for the CFTC has written to the Court to request that the court set a deadline for Defendants Dibb and Woolfenden to answer the complaint in this matter. Specifically, three weeks after receiving the CFTC’s responses to their pre-motion letters, neither defendant has notified the court in writing of his intention to proceed with a motion to dismiss.

Judge Victor Marrero agreed with the CFTC and today issued an order directing the defendants to respond by 3/21/2019, by letter not to exceed three pages, to the matter set forth by the plaintiff.

Let’s recall that, according to the CFTC, the New York Southern District Court has personal jurisdiction over Mr. Woolfenden because his actions caused the underlying misconduct at issue in this case. TFS-ICAP brokers made misrepresentations to US-based clients because they had been trained and encouraged to do so by Mr. Woolfenden. Though Mr. Woolfenden lived in London, as the Global Head of Emerging Markets FX Options he directly supervised and managed these US- and London-based brokers through at least mid-August 2015. Moreover, he registered with the CFTC in the United State as an associated person of two CFTC-registered entities.

Furthermore, the CFTC argues that the conduct at issue in this case – flying prices and printing trades to US-based clients – is a direct result of Mr. Woolfenden’s own actions. The Complaint alleges that in 2008, Woolfenden introduced the practices of flying and printing to US-based brokers. Specifically, he pressured existing US management at the time to adopt the deceptive practices, stripped them of responsibilities when they resisted, and installed a new manager who would comply. Moreover, Mr. Woolfenden took it upon himself to teach the practices to US-based supervisees.

Regarding Mr Dibb, the CFTC argues that the Complaint contains allegations sufficient to draw a reasonable inference that he knew or, at the very least, “consciously avoided” knowledge that TFS-ICAP brokers flew prices and printed trades to US-based clients or was “willfully blind” to such conduct. The Complaint alleges Mr. Dibb (1) flew prices and printed trades himself before he was CEO; (2) heard London brokers on the floor talk about flying and printing while he was CEO; and (3) on at least one occasion, in 2014, received an email from a New York broker expressing concern about printing trades in a regulated market. Furthermore, the Complaint alleges that Mr Dibb did not implement any policies or procedures-either in New York or London-to deter or detect these deceptive practices. Collectively, these allegations are seen as more than adequate by the CFTC to plead conscious avoidance.

Read this next

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.

Digital Assets

US, UK probe $20 billion Tether transfers tied to Russian exchange.

U.S. and UK authorities are investigating the movement of $20 billion in the USD-pegged stablecoin tether (USDT) through Moscow-based exchange Garantex.

<