NFA bars Quants Capital Management from membership for one year

Maria Nikolova

NFA also permanently barred Quants and its ex-principal Kisacikoglu from acting as a principal of an NFA Member.

United States National Futures Association (NFA) has announced it has barred former commodity pool operator Quants Capital Management, Inc. and its former principal and associated person Gokhan Kisacikoglu from membership for one year. NFA is also barring permanently Quants and Kisacikoglu from acting as a principal of an NFA Member.

The Decision, issued by an NFA Hearing Panel, is based on a Complaint issued by NFA’s Business Conduct Committee (BCC). The Hearing Panel found that Quants and Kisacikoglu used misleading and deceptive promotional material that included unsubstantiated positive performance information and presented hypothetical information as if it were actual performance. The Hearing Panel also determined that Quants failed to prepare and distribute required monthly account statements.

While an NFA member (from May 2010 to January 2018) Quants operated two pools that engaged in trading – Quants Strategy Equity Fund and Quants Fund.

NFA’s complaint charges that Quants violated NFA Compliance Rules by failing to prepare and distribute pool account statements. The Complaint also charges that Quants together with Kisacikoglu violated NFA Compliance Rules by preparing and distributing a misleading disclosure document and using deceptive and misleading promotional material.

Monthly account statements were not provided to Quants’ investors on time.

Also, the Complaint alleges that the respondents, in their disclosure document and promotional material, included positive performance information related to MedSecurities accounts. Kisacikoglu represented to NFA that the profitable performance was derived from trading recommendations that Quants provided to seven account holders at MedSecurities Investments. But the respondents were unable to prove that they exercised discretion over these accounts. The only results that NFA could substantiate revealed significant losses.

Finally, the Complaint charges that Quants and Kisacikoglu used a tear sheet that failed to clearly identify performance results as hypothetical and included a disclaimer that made it unclear whether the returns are actual or hypothetical.

In determining the penalty, the NFA Panel took into account that this is the second BCC complaint against the respondents. In September 2013, Quants and Kisacikoglu were ordered to pay a fine for failing to comply with recordkeeping requirements.

  • Read this next

    Inside View

    Scalping or day trading?

    Among the many popular trading styles with both beginners and experienced traders are scalping, which allows you to extract small portions of profit from each price movement, and day trading, which aims to trade over a single day. In this article, you will learn what scalping and day trading are and their differences and peculiarities. Ultimately, you will learn what to look for to understand which trading style is right for you.

    Crypto Insider

    Unveiling Plasma Next: INTMAX’s Solution to Scale Ethereum with Stateless Layer

     INTMAX has launched Plasma Next on the mainnet α, a groundbreaking Layer 2 zkRollup, revealed by co-founder Leona Hioki at ETH Denver. This innovation offers scalability with constant costs per block, merging Plasma’s scalability goals with zkRollups’ security.


    Nuam selects Vermiculus for clearing system in Chile, Colombia, and Peru

    “We are proud to deliver a system that plays an integral role in the core of this historical merger, empowering one of Latin America’s most crucial markets with VeriClear’s state-of-the-art technology, together with our deep market expertise.”

    Retail FX, Uncategorized

    Moomoo launches super app in Malaysia

    “As an investment platform connecting 21 million retail investors globally, we envision collaborating with exchanges, regulatory bodies, and partners in the visible future to become the gateway, connecting Malaysia’s investment products to global capital and investors.”

    Executive Moves

    FXPA elects Joe Hoffman as new Chair in its 10th anniversary

    “The opportunity to serve as Chair of the FXPA is truly an honor, and I am committed to upholding the exceptional work of a FXPA. Given the recent market fluctuations due to global tensions, inflationary pressures, shifts in monetary policy, as well as the outcome of the US election and the risk of recession, brings the potential for more FX volatility in 2024. I am dedicated to expanding the FXPA’s membership and I’m excited about collaborating with all members to echo the unified voice of the FX market.”

    Market News

    Eurozone Fights Stagnation Whilst Stock Indices Rally

    European stock markets are defying economic gloom as they continue to soar to all-time highs, showcasing resilience amidst broader economic challenges.


    Lisk Partners with Indonesia’s Communications Ministry to Boost Web3 Startup Ecosystem

    Discover the strategic partnership between Lisk and the Indonesian Ministry of Communications and Informatics, aimed at propelling local Web3 startups to new heights through comprehensive support and education.

    Executive Moves

    Admirals appoints founder Alexander Tsikhilov as CEO

    “Striking the right balance between sourcing new talent and developing and harnessing the strength and capabilities of our current workforce, is key to achieving our vision.”

    Executive Moves

    GCEX appoints Ignacio Corral and Helen Man to UK operation

    GCEX has announced the appointment of Ignacio Corral and Helen Man to its UK FCA-regulated operation based in London as the firm further expands its global business on account of increasing demand for its digital prime brokerage services.