Effex Capital, engulfed in FXCM’s US exit, gets more time to determine next steps in lawsuit against NFA

Maria Nikolova

Effex Capital, which is suing the National Futures Association over its press releases about the settlement with FXCM, gets extra time to decide on whether to file a petition for rehearing.

Effex Capital, the entity embroiled in FXCM’s exit from the US retail Forex market, got extra time to decide on how to proceed further with its lawsuit against the National Futures Association (NFA).

As FinanceFeeds reported earlier in August, Effex lost its appeal in the lawsuit, with the Seventh Circuit U.S. Court of Appeals issuing Final Judgment affirming the District Court’s ruling in the case. According to Effex Capital, NFA had defamed it in documents related to a settlement between the NFA and FXCM. The Court of Appeals sided with the District Court in that Effex Capital had not exhausted all administrative remedies available to it before taking NFA to Court.

Effex, however, does not seem to be giving up. It has requested an extension of time to decide its further actions. It said the extension was necessary to allow the plaintiffs-appellants an opportunity to determine whether, and to what extent, plaintiffs-appellants will file a petition for rehearing en banc in this case.

The Court has granted the motion to the extent that the appellants’ petition for rehearing or rehearing en banc, if any, shall be due by September 17, 2019.

Let’s recall that, in its lawsuit against NFA, Effex sought injunctive relief, asking for an order requiring the NFA to remove the FXCM Settlement Documents from its website, to delete all references to Effex, or, alternatively, to provide Effex with a “name clearing hearing.” It further requested an order compelling the NFA to “issue a new press release stating: (a) NFA did not make any findings against Effex or Dittami; (b) Effex was not a de facto dealing desk of FXCM; (c) Effex was not controlled by FXCM; and (d) FXCM was not ordered to make any customer restitution.” Effex also asked for money damages of $10,000,000 for lost profits and to redress its constitutional injury.

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