NFA implements permanent bar on FXCM

Maria Nikolova

With effect of March 10, 2017, the United States NFA imposed permanent member and principal bar on Forex Capital Markets LLC.

It’s official! FXCM is no longer a part of the US market, after the United States National Futures Association (NFA) implemented a permanent bar on the broker.

As per the latest data in the NFA database, Forex Capital Markets LLC has a principal permanent bar and an NFA member permanent bar against its name.

Also with effect from March 10, 2017, FXCM has six US registrations withdrawn, including (inter alia) the ones as Forex Dealer Member, Forex Firm, Retail Foreign Exchange Dealer, and Futures Commission Merchant.

Earlier this week, on March 9, 2017, Drew Niv and William Ahdout officially abandoned their NFA registrations, following settlements with US regulators in February this year.

The US regulatory findings have shown that FXCM has misled its customers and regulators about its (No) dealing desk model. The findings alleged that the broker had traded against its clients for a number of years, while providing false information to authorities and clients. The resulting settlement led to bans on NFA and CFTC membership for FXCM, as well as for three of the company’s principals.

More than a month after the settlements were reached, FXCM.com is like a landing page, redirecting to non-US subsidiaries of the broker, including to Bermuda-registered unregulated division FXCM Markets. All mention of Forex Capital Markets LLC has been removed from the webpage.

The US retail FX accounts of FXCM have been transferred to Forex.com, the retail FX division of GAIN Capital. Both FXCM and GAIN Capital have confirmed the successful transfer of 47,000 accounts but questions around the trading activity of the newly acquired customers are still open. And it is this trading activity that will determine the price GAIN will pay for the acquisition.

On February 27, 2017, about three weeks after the regulatory revelations about FXCM became public, FXCM Inc changed its name to Global Brokerage Inc (NASDAQ:GLBR) and started trading under a new ticker on NASDAQ.

Read this next

Retail FX

Banxso announces 8.7% interest rate on deposits in South Africa

“With Banxso, they can enjoy the benefits of both worlds – earning competitive interest and having the freedom to trade, all within the same platform.”

Industry News

FINRA to publish transaction details in U.S. Treasury securities

“Consistent with our longstanding practice, FINRA is introducing greater transparency in a calibrated and careful manner, benefiting liquidity and resilience in this critical market while also mitigating potential information leakage concerns.”

Institutional FX

OpenYield launches “cheap and easy” fixed income trading for brokers

“We’re on a mission to make bonds cheap and easy to trade, and are excited about the opportunity to build generational capital markets infrastructure.”

Digital Assets

Sumsub and Mercuryo publish a guide for VASPs: “Mastering Travel Rule Compliance”

“At Sumsub, we’ve concentrated our efforts on filling the gap in understanding the complexity of Travel Rule regulation and helping organizations find the best solution to stay safe and compliant while minimizing costs and avoiding potential risks of non-compliance. This guide we created with Mercuryo, our trusted partner, is the ultimate navigation tool all VASPs can consult.”

Digital Assets

Bitget Wallet Leads with Record Swap Volume & New Crypto Innovations

This week, Bitget Wallet achieved a milestone by surpassing Metamask with a record 388,757 Swap order transactions, securing the global lead. The significant 7-day trading volume, almost 68,000 more than its rival, underscores its liquidity and user trust. This robust activity signals Bitget Wallet’s prominent role and reliability in the dynamic crypto market.

Digital Assets

Embarking on a Digital Currency Journey

Imagine you’ve stumbled upon a treasure map, leading you to untold riches hidden in the vastness of the internet. Instead of gold coins and jewel-encrusted goblets, this treasure comes in the form of digital currencies, the modern-day loot coveted by many.

Reviews

Traders Union Experts Share The Trading Analyst Review For 2024

Navigating options trading in rapidly shifting markets poses a considerable challenge. This is where options trading alert services become invaluable. They aid traders in keeping abreast of evolving opportunities and market trends. In this assessment, Traders Union experts scrutinize The Trading Analyst alert service to ascertain its efficacy. 

Digital Assets

BlockDAG’s Presale Achieves $9.9M: Aiming For A 5000-Fold ROI As Cardano’s Price Rises And Fantom Launches Sonic

Explore Cardano’s surge, Sonic’s efficiency, and why BlockDAG’s growth makes it the top crypto choice. A deep dive into the future of blockchain investments.

Digital Assets

US, UK probe $20 billion Tether transfers tied to Russian exchange.

U.S. and UK authorities are investigating the movement of $20 billion in the USD-pegged stablecoin tether (USDT) through Moscow-based exchange Garantex.

<