NFA fines Makor Securities London Ltd. $375k for reporting failures
Makor Securities London Limited provides institutional brokerage services to customers worldwide. The company focus on risk arbitrage, special situations, relative value, and event-driven opportunity.
The National Futures Association (NFA) has ordered Makor Securities London Ltd. to pay a $375,000 fine for “allegedly” failing, in its capacity as an introducing broker (IB), to disclose to NFA intra-month transfers of assets with an affiliate between August 2021 and February 2022, which gave the impression Makor was holding the assets at all times during this period.
Makor is no longer an introducing broker (IB) and has provisionally registered as a swap dealer member of the NFA.
The complaint was issued by NFA’s Business Conduct Committee (BCC) and Makor submitted a settlement offer in which the firm neither admits nor denies the allegations.
Makor didn’t give timely notice of capital shortfalls
The regulator also alleged that a former associated person of Makor represented to the NFA that the firm held the assets as inventory when they should have known the firm transferred the assets to its affiliate and, therefore, was not holding them as inventory.
According to the complaint, Makor failed to maintain at all times the required minimum adjusted net capital during various periods since July 2017 and failed to give timely notice to NFA of the firm’s capital shortfalls.
Other failures include lack of proper supervision of its employees and agents in the conduct of their commodity interest activities for or on behalf of the firm.
In October 2021, Makor completed its Series A raise at a $200m valuation to support the expansion of Enigma Securities, Makor’s industry leading digital asset brokerage with monthly trading volumes in excess of $2 billion, as well as further Makor’s geographical expansion and M&A activities.
The company also built new strategic partnerships with Algorand – having onboarded CEO Steven Kokinos to its board of directors -, Alan Howard, and several notable US based asset managers.
Makor will take advantage of Algorand’s blockchain expertise to build and distribute digital assets, bridging the gap between Wall Street and the next generation of financial products.