5 June, AtoZForex – National Futures Association’s (NFA) function is to safeguard market integrity, protect interests of investors and help its Members comply with the regulations and meet their responsibilities. The regulator is active in targeting its main mission. Recently the broker Avail Trading received complaint from NFA, where the regulator listed company’s violations.
Avail Trading seeks bankruptcy protection?
The NFA is a self-regulatory organization. It functions for the derivatives industry of the US, including on-exchange traded futures, OTC derivatives, and retail off-exchange foreign currency. The regulator has developed and enforced regulations for more than 30 years.
The update from the NFA states that the regulator became aware of the bankruptcy process of California-based Introducing Broker (IB) Avail Trading Corp. This is related to firm’s net-capital requirement and also a legal action from the customer who have sued the company over losses. It all prompted the firm to take bankruptcy protection measures. However, the firm has another issue to deal with – the broker should respond to the complaint within 30 days.
Avail Trading received complaint from NFA: details
The complaint was issued by the Business Conduct Committee of the NFA (BCC) against the broker Avail Trading and David Manoukian, the firm’s principal. Is summarizes the action against the firm concerning several alleged violations including the method of first-in-first-out (FIFO) order routing, failure to meet net-capital requirements, failure to supervise and observe hight standards of commercial honor within the firm’s actions and other points stated in the complaint.
Parallel announcement to Vincent Capital Group LLC
At the same time, the regulator made a parallel announcement to the Vincent Capital Group LLC and Ryan Litfin. The BCC issued a complaint against the firm basing it on the fact that the company and its principal failed to comply with the NFA’s Hearing Panel decision and used not properly balanced promotional materials. The firm has time to respond till the end of this month.
Think we missed something? Let us know in the comments section below