Nadex bans member accused by FINRA of unregistered sale of securities
Nadex has revoked the membership and terminated the account of David Ferwerda.
North American Derivatives Exchange (Nadex), a subsidiary of IG Group Holdings plc (LON:IGG), has taken disciplinary action against a member who has failed to inform the Exchange about investigations by FINRA and the Michigan Department of Licensing and Regulatory Affairs into his activities.
The Nadex Compliance Department launched an investigation into Member David Ferwerda upon notice that, in May 2018 he was accused by FINRA of selling securities to customers that were neither registered nor exempt from registration. On October 30, 2018, Ferwerda executed a Letter of Acceptance, Waiver and Consent with FINRA (AWC NO. 2018057887801), whereby, without admitting or denying FINRA’s findings, consented to the sanction and entry of findings that he failed to provide FINRA with requested documents and information. As part of the AWC, Ferwerda also consented to a permanent bar from association with any FINRA member in any capacity.
Nadex has determined that Ferwerda breached Nadex Rules 3.3(d) (i), (iv), and (v) when he failed to timely apprise the Exchange of the FINRA action concerning allegations of the unregistered sale of securities and that he was permanently barred from association with any FINRA member.
Moreover, he failed to disclose any information regarding the Michigan Department of Licensing and Regulatory Affairs’ open investigation into his related activity.
In addition, the Compliance Department concluded that Ferwerda violated Exchange Rule 3.3(a) and Member Acknowledgements and Authorizations, Section (h) of the Nadex Membership Agreement when he failed to cooperate with the Compliance Department’s inquiries regarding the allegations contained in the subject alerts.
Due to the aforementioned violations, David Ferwerda’s Nadex membership has been revoked, his account has been terminated, and he has been permanently banned from trading on the Exchange either directly for his own account or through an intermediary, or as authorized trader on behalf of any other account.
The ban is effective November 4, 2019.