Nadex revokes membership of trading member for allowing his son to trade from his account
From August 1, 2016 to May 10, 2017, Robert Ramsey allowed his son, Davis Ramsey, to access his account for the purpose of entering transactions on his behalf.
North American Derivatives Exchange (Nadex), a subsidiary of IG Group Holdings plc (LON:IGG), has revoked the membership of a trader who allowed his son to access and trade from his account with the Exchange.
An investigation into Robert Ramsey’s account activity has shown that on numerous occasions between August 1, 2016 and May 10, 2017, he allowed his son, Davis Ramsey, to access his account for the purpose of entering transactions on his behalf.
In a related investigation, Nadex discovered that Davis Ramsey engaged in a scheme to successfully manipulate, or attempt to manipulate, the expiration value of Nadex binary contracts and that he employed the same scheme when he entered transactions in Robert Ramsey’s account during the Review Period. In this related matter, pursuant to a settlement agreement, Davis Ramsey agreed to pay disgorgement of all relevant gains resulting from his manipulative activity, including gains in Ramsey’s account.
By allowing his son to access and enter transactions in his account, Robert Ramsey violated Nadex Rule 5.2(e) and Section (a) of the Membership Agreement, which prohibit an individual Trading Member from allowing another Person to access and control that Member’s account.
By settlement agreement, in which Robert Ramsey neither admitted nor denied the findings or conclusions of the investigation, Robert Ramsey was assessed a fine of $5,000. In addition, pursuant to the agreement, his membership has been revoked, and he has been permanently banned from trading on the Nadex markets by any means.