Breaking: IBFX fined $1 million and banned by NFA


15 March, AtoZForex, London – Florida-based, formerly known as TradeStation Forex, IBFX fined $1 Million by the Commodity Futures Trading Commission (CFTC) and banned by NFA for failing to meet minimum capital requirements, timely report minimum net capital violations, supervisory failures, and violating previous CFTC order.

Less than two weeks after IBFX sold its client-base of approximately 2,000 North American customers to OANDA Corporation, the long arm of the regulator has struck. Was the IBFX struggling even before the cease of forex operations?

IBFX fined $1 Million

The CFTC Order issued yesterday requires IBFX to pay a $1 million civil monetary penalty and agree to certain undertakings set-forth in the Order relating to its RFED operations. The CFTC Order finds that from 15th of January 2015, through 5th of February 2015, IBFX failed to meet the minimum capital requirements again, failed to diligently supervise its employees in violation of CFTC Regulations, and failed to notify the CFTC of its undercapitalization. In addition, the Order settles charges that IBFX violated a prior CFTC Order entered against IBFX on December 10, 2014.

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At that time, the CFTC fined IBFX with a $600,000 civil monetary penalty and ordered IBFX to develop an automated forex exposure monitoring system that will allow the comprehensive real-time monitoring of its actual forex capital exposure, also adopt and implement risk management procedures regarding 24-hour forex exposure monitoring.

Banned by NFA

Just today, the US National Futures Association (NFA) announced that it has ordered IBFX to permanently withdraw from NFA membership. The decision made by NFA’s Business Conduct Committee (BCC), stems from a Complaint authorized by the BCC on November 2, 2015, and a settlement offer submitted by IBFX.

The Complaint alleged that IBFX failed to comply with Chief Compliance Officer set requirements as a provisionally registered swap dealer (SD) and failed to implement the mentioned risk management program. The Complaint also alleged that IBFX failed to maintain the required minimum adjusted net capital, failed to notify NFA of the firm’s capital deficiencies, failed to adequately supervise the firm’s operations, and failed to maintain accurate books and records.

The NFA Basic Search system indicates that IBFX Inc is currently “on withdrawal hold”.

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