NFA imposes $50,000 fine on GAIN Capital

Maria Nikolova

According to the allegations, Gain failed to favorably adjust all customer orders adversely impacted by a recurring malfunction affecting its electronic trading platform.

The United States National Futures Association (NFA) has ordered Bedminster, N.J. futures commission merchant and forex dealer member Gain Capital Group LLC to pay a $50,000 fine.

The Decision, issued by NFA’s Business Conduct Committee (BCC), is based on a Complaint issued by the BCC and a settlement offer submitted by Gain. The Complaint alleged that Gain failed to favorably adjust all customer orders adversely impacted by a recurring malfunction affecting Gain’s electronic trading platform.

Upon investigation, it was determined that, from April 2016 to August 2017, customers trading with Gain via the MT4 trading platform experienced a malfunction which adversely affected customers orders including the orders that Gain had previously adjusted after receiving complaints. In all, NFA determined that more than 7,400 customers of the brokerage were affected by the malfunction. (Some customers actually benefited from the problem.)

Although GAIN made the necessary account adjustments to all negatively impacted customers, NFA notes that GAIN failed to take timely steps to assess the extent of customer harm.

The $50,000 fine is a result of a settlement offer submitted by GAIN which NFA has decided to accept.

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