Nadex bans another member over provision of false and misleading information
This is the second such disciplinary action in less than a week.
North American Derivatives Exchange (Nadex), a subsidiary of IG Group Holdings plc (LON:IGG), has banned another of its trading members over provision of false and misleading information. The disciplinary action was announced earlier this week via a notice on Nadex’s website.
As a result of non-compliance with Nadex Rules, Pengfei Gui has been fined $1,750. Additionally, his membership has been revoked and he has been permanently banned from trading on the Nadex markets by any means.
Pengfei Gui has been found to have breached Nadex Rule 5.19(k). The rule states:
No Person shall intentionally provide misleading, erroneous, or fraudulent information to Nadex on a membership application or otherwise.
In December 2017, the Compliance Department contacted Mr. Gui requesting that he provide information regarding his trading knowledge, activity on Nadex, and relevant financial information. Mr. Gui responded to certain inquiries and requests for information, however, he failed to disclose pertinent details and provided false and misleading information to the Compliance Department relevant to a pending investigation.
Following the investigation, the Compliance Department concluded that Mr. Gui violated Nadex Rule 5.19(k) when he provided false and misleading information relevant to Nadex’s investigation into his account activity.
This is the second such disciplinary action Nadex has taken against its members in less than a week. Earlier this week, Nadex imposed a fine of $2,250 on Thomas Nguyen, revoked his membership and banned him from trading on the Nadex markets. An investigation has shown that Mr. Nguyen violated the Nadex Membership Agreement Section (h) and Nadex Rule 3.3(a) (Member Obligations) when he failed to fully respond to, and/or cooperate with, the Compliance Department’s requests for information.
