Nadex bans two of its members over providing misleading info

Maria Nikolova

Sew Loy Thor and Keat Hing Chin have both provided misleading and incomplete information to the Compliance Department relevant to a pending investigation.

North American Derivatives Exchange (Nadex), a subsidiary of IG Group Holdings plc (LON:IGG), has once again acted against violation of its rules. On September 25, 2019, the Exchange posted notices regarding disciplinary actions against two of its members – Sew Loy Thor and Keat Hing Chin.

Regarding Sew Loy Thor, Nadex explains that, back in September 2018, the Compliance Department contacted Thor asking her to provide information regarding her trading activity on Nadex, general trading knowledge and background, and relevant financial information.

In addition to failing to provide some of the information and documentation requested, Thor also provided misleading and incomplete information to the Compliance Department relevant to a pending investigation.

Based on Nadex’s investigation, the Compliance Department concluded that Thor violated the Nadex Membership Agreement Section (h) and Nadex Rule 3.3(a) when she failed to fully respond to, and/or cooperate with, the Compliance Department’s request for information. Also, the Compliance Department concluded that Thor violated Nadex Rule 5.19(k) when she provided misleading and incomplete information relevant to Nadex’s investigation into her account activity and connections with other Nadex members.

Regarding Keat Hing Chin, Nadex explains that, back in September 2018, the Compliance Department contacted Chin requesting that he provide information regarding his trading activity on Nadex, general trading knowledge and background, and relevant financial information. Chin responded to certain inquiries and requests for information; however, he failed to provide pertinent documents relevant to a pending investigation. In addition to failing to provide some of the information and documentation requested, Chin also provided misleading and incomplete information to the Compliance Department relevant to a pending investigation.

Based on Nadex’s investigation, the Compliance Department concluded that Chin violated the Nadex Membership Agreement Section (h) and Nadex Rule 3.3(a) when he failed to fully respond to, and/or cooperate with, the Compliance Department’s request for information. Furthermore, the Compliance Department concluded that Chin violated Nadex Rule 5.19(k) when he provided misleading and incomplete information relevant to Nadex’s investigation into his account activity and connections with other Nadex members.

As a result of their non-compliance with the Nadex Membership Agreement Section (h), and Nadex Rules 3.3(a) and 5.19(k), Sew Loy Thor and Keat Hing Chin have each been fined $2,000. Additionally, their membership has been revoked and they have been permanently banned from trading on the Nadex markets by any means.

Nadex has taken similar action before. In June this year, for instance, the Exchange fined and banned Juncong Tang because he provided false and misleading information relevant to Nadex’s investigation into his account activity.

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