GTF denies CFTC allegations, says it is not Tallinex’s IB

There have been some developments in the case brought by the the United States Commodity Futures Trading Commission (CFTC) against retail Forex broker Tallinex and its Utah introducing broker. The US regulator alleges that Tallinex and its Utah IB General Trader Fulfillment (GTF) illegally offered retail Forex services to US residents.

On Monday, GTF filed its answer to the CFTC complaint. In the document, seen by FinanceFeeds, GTF admits it has never been registered with the CFTC, but denies that it was required to be registered with the regulator.

The company denies that it has operated as an introducing broker for Tallinex or that it has participated in an introducing broker program operated by Tallinex. GTF also denies that it has received commission on revenue generated by trading activity from Tallinex. In addition, GTF denies that it solicits US customers to open forex trading accounts at Tallinex.

GTF admits that independent contractors market its business products, including a proprietary software system and “coaching fulfillment”. GTF also admits that the program involves coaching customers how to trade forex.

The document makes it clear that GTF denies pretty much all allegations made by the CFTC. The company requests that the Commission’s Complaint be dismissed with prejudice, and the regulator takes nothing therefrom.

In the meantime, the summons was sent to Tallinex via mail dated June 20, 2017. The defendant has 21 days to file an answer.

The CFTC alleges that from at least September 2012 to at least September 2016, the defendants have solicited or accepted orders from retail FX customers located in the United States, with the sum accepted exceeding $1.5 million. The regulator is seeking (inter alia) a Court order requiring Defendants to pay civil monetary penalties in amounts the greater of: (i) $170,472 for each violation of the Act and Regulations; (ii) triple their monetary gain.