Despite Tallinex’s unresponsiveness, CFTC plans to press ahead with action

Maria Nikolova

The CFTC plans to disclose details about Tallinex’s violations of the CEA and Commission Regulations, and to request a permanent injunction, equitable relief in the form of restitution to customers, and civil monetary penalties.

Less than a week after the United States Commodity Futures Trading Commission (CFTC) announced it settled with General Trader Fulfillment (GTF), an introducing broker to retail FX broker Tallinex, the regulator has informed the Court of its plans regarding Tallinex itself.

Let’s recall that, according to the CFTC complaint, from at least September 2012 to at least September 2016, Tallinex and its introducing broker General Trader Fulfillment (GTF) solicited or accepted orders from retail FX customers located in the United States, without having the necessary registration.

From approximately September 2012 through the present, GTF has provided coaching and instruction in trading Forex to customers who subscribe to its services. During the relevant period, at least one GTF coach introduced US customers to Tallinex, an unregistered retail foreign exchange dealer (RFED), for the purpose of opening and maintaining individual retail foreign currency trading accounts at Tallinex and participating in off-exchange retail Forex transactions at Tallinex. By so doing, GTF, through the actions of its coach, acted as an IB without being registered with the Commission as such.

Under the settlement, GTF is prohibited from acting as an introducing broker; entering into any transactions involving commodity interests; applying for registration with the Commission; acting as a principal, employee or an agent registered or required to be registered with the Commission. The company is also ordered to pay a civil monetary penalty of $85,000.

Tallinex, however, has not filed any response to the Commission’s allegations. But the CFTC does not plan to halt the action.

The US regulator has informed the Utah District Court that it intends to file a Motion and Memoranda For Entry of Default Judgment against Tallinex detailing Tallinex’s serious violations of the Act and Commission Regulations. The Commission will also request relief in the form of a permanent injunction, equitable relief in the form of restitution to customers, and civil monetary penalties.

The case is captioned Commodity Futures Trading Commission v. Tallinex et al (2:17-cv-00483).

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