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

Digital Assets

FTX co-CEO, SBF’s close associate sentenced to 90 months in prison

Former FTX executive Ryan Salame has been sentenced to 90 months in prison after pleading guilty to criminal charges last September.

blockdag

BlockDAG Dominates Crypto Presales With $34.7M Milestone, Surpassing Floki And Bonk In Market Influence

Discover how BlockDAG’s cutting-edge dashboard and presale achievements upstage Floki and Bonk in the cryptocurrency arena, signaling superior investment opportunities.

Market News, Tech and Fundamental, Technical Analysis

Dogecoin Technical Analysis Report 28 May, 2024

Dogecoin cryptocurrency can be expected to fall further toward the next support level 0.1500.

Retail FX

Canadian broker Questrade taps TradingView charting

Canadian securities brokerage Questrade has upgraded its web platform by integrating popular charting software TradingView.

Fintech

Germany lifts N26’s monthly cap of 60,000 new clients

Germany’s financial regulator has lifted a cap on the number of new clients that N26 Bank AG can take on after the fintech company improved its anti-money laundering controls. BaFin, the country’s financial watchdog, will remove the cap entirely from June 1, 2024.

Education

Animals and the money: Octa broker gathered the most popular slang words in financial markets

If you’ve seen ‘The Wolf of Wall Street’ with Leonardo DiCaprio as Jordan Belfort, you might have wondered why he’s called a wolf in the movie. It’s not just a random label. Animals are often used in finance to describe traders, their traits, or market conditions.

Industry News

Octa’s Global Ramadan Impact

Charity activities are an essential part of Ramadan celebrations. Octa seized this opportunity to implement a series of socially beneficial initiatives worldwide. Read about the projects the broker carried out in Indonesia, Malaysia, and Nigeria.

Digital Assets

Nexo integrates The Tie’s advanced real-time analytics

“Learning to analyze and “hear” the market takes time, but it also takes information. Together with the Tie, we are acting on our commitment to ensure all users have fast access to market sentiment and movements, enhancing their experience, strategies, knowledge, and engagement through valuable data-driven insights.”

Executive Moves

The Financial Commission appoints FastMT’s Aytugan Khafizov to committee

“We are thrilled to have Mr. Khafizov join our dispute resolution committee. His deep expertise in financial trading systems and his commitment to improving trading technologies will significantly strengthen our efforts in providing fair and efficient resolutions for our members’ clients.”

<