Court grants CFTC more time to decide on its stance in FXCM publications case

Maria Nikolova

The Seventh Circuit U.S. Court of Appeals gives the CFTC more time to decide on its position in a case concerning NFA’s publications about FXCM from February 2017.

The United States Commodity Futures Trading Commission (CFTC) has secured the second extension of time it has requested in order to determine its stance in a lawsuit targeting the National Futures Association (NFA). 

The lawsuit, concerning publications about regulatory actions against FXCM from February 2017, has been filed by Effex Capital, which has been embroiled in FXCM’s exit from the US retail FX market. Effex Capital alleges that NFA committed a raft of state law torts, violated the Illinois Trade Secret Act, and violated the Fifth Amendment’s Due Process Clause through its actions regarding a settlement between the NFA and its member Forex Capital Markets, LLC (FXCM). In particular, Effex claims that the NFA made false and misleading statements about it in four NFA documents relating to the FXCM settlement: a Complaint, a Decision, a Narrative of the Decision, and a Press Release.

After the Illinois Northern District Court sided with NFA and dismissed the case in April 2018, Effex appealed, taking the case to the Seventh Circuit U.S. Court of Appeals, where it is pending now. In order to determine its ruling, the Appeals Court has asked the CFTC to have its say via the so-called file a brief as “amicus curiae”, a friend to the court, who is not a party in the case.

The CFTC, however, appears to need more time than that originally granted by the Court to decide on whether it will file such a document. On March 21, 2019, the Court agreed to grant the CFTC another time extension to determine its stance. The amicus brief of the Commodity Futures Trading Commission, if any, shall be due by April 8, 2019, the Court said.

Let’s recall that, when the Appeals Court invited the CFTC to voice its stance in this case, it noted that the District Court premised its dismissal on a variety of possible avenues that Effex could have taken to seek review of the NFA’s actions by the CFTC.

“Having studied the briefs and the record and having heard oral argument, the court has determined that, in deciding this appeal, it would benefit greatly from the view of the CFTC as to whether a non-party such as Effex can seek review of an NFA disciplinary procedure or otherwise seek redress before the Commission.”

Read this next

Retail FX

Investors from Cyprus and Dubai acquire ‘significant stake’ in M4Markets

Seychelles-regulated brokerage firm M4Markets firm has picked up some investment from Cyprus and Dubai based investors in a new funding round that it will be using to grow its business.

Executive Moves

UAE broker Amana elevates Amr Masry to sales director

Amr Masry has been promoted to a new senior role at Amana Capital, becoming the group’s newest Sales Director, following a successful tenure with the UAE-based FX and CFDs broker.

Executive Moves

TopFX promotes Omar Al-Janabi to head of sales and business development

Prime brokerage firm TopFX has strengthened its Middle East operations with the promotion of Omar Al-Janabi, who is taking on an expanded role as global head of sales and business development.

Retail FX

Plus500 says 2022 revenue to be ‘significantly’ ahead of analysts’ estimates

Israeli-based, but London-stock market listed Plus500 said it expects annual revenue and earnings to be ahead of analysts’ estimates even as trading levels normalised from record volumes in the first quarter.

Digital Assets

Crypto derivatives giant BitMEX launches spot market

Crypto exchange BitMEX is looking to branch out of its singular focus on crypto derivatives with a suite of new product offerings. Although derivatives are to remain at the heart of BitMEX’s business, the popular platform will add spot crypto trading as it aims to aggressively grow their user base.


PrimeXM reports mixed trading volumes for April

PrimeXM has reported weaker trading volumes for April 2022, in line with other institutional and retail platforms that saw the activity of their clients dropped compared to a month earlier.

Digital Assets

DLT Finance approved by BaFin to support brokerage and custody of digital assets

DLT Finance is already partnered with big names within the digital asset space, including Kraken, Bitstamp, B2C2, and Bittrex.

Institutional FX

LUKB taps vestr to launch actively managed products, AMCs

The partnership with vestr goes to show the growing importance of digitising the active investment management space.

Digital Assets

Jewel taps Tokeny to launch stablecoin-as-a-service solution on Polygon

Jewel aims to offer a stablecoin-as-a-service solution to other digital asset and financial institutions B2B, allowing those businesses to provide cheaper, easier and near real time payments with stablecoins issued and redeemable directly at the bank level at Jewel.