Nadex member gets banned after providing false and misleading information
Thomas Nguyen provided false and misleading information to Nadex’s Compliance Department relevant to a pending investigation.
North American Derivatives Exchange (Nadex), a subsidiary of IG Group Holdings plc (LON:IGG), has taken disciplinary action against one of its Members over his failure to make certain disclosures.
In a notice published on its website, Nadex explains that Thomas Nguyen has violated several of its rules.
In December 2017, Nadex’s Compliance Department contacted Mr. Nguyen requesting that he provide information regarding his trading activity on Nadex and relevant financial information. In addition to failing to provide some of the information and documentation requested, he also provided false and misleading information to the Compliance Department relevant to a pending investigation.
Following Nadex’s investigation, the Compliance Department concluded 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.
Further, the Compliance Department determined that Mr. Nguyen violated Nadex Rule 5.19(k), which concerns prohibited transactions and activities. Nguyen violated the rule when he provided false and misleading information relevant to Nadex’s investigation into his account activity.
As a result of his non-compliance with the Nadex Membership Agreement Section (h), and Nadex Rules 3.3(a) and 5.19(k), Mr. Nguyen has been fined $2,250. Additionally, his membership has been revoked and he has been permanently banned from trading on the Nadex markets by any means.
In a similar action in March 2019, Nadex revoked the membership of Kevin Whylie after an investigation by Nadex’s Compliance Department revealed he had been the subject of a Commodity Futures Trading Commission (CFTC) enforcement action. The CFTC action against Whylie concerned pool fraud, misappropriation of funds, and registration violations. As a result, of the CFTC action, Whylie was assessed monetary penalties, and was permanently banned from trading and from CFTC registration. Whylie violated Nadex Rule 3.3(d) as he failed to notify the Exchange that he was subject to regulatory proceedings before a Regulatory Agency and that he had his trading privileges suspended.