CFTC Files Charges Against 8 Unregistered Firms in the US

CFTC files charges against 8 unregistered firms in the US, while simultaneously issuing fines for 4 other firms. Which firms have been singled out by the US regulatory body this time?

17 September, AtoZ Markets One of the US financial markets regulators, the Commodity Futures Trading Commission (CFTC) has filed charges against eight firms that were supposedly operating in the country illegally.

CFTC Files Charges Against 8 Unregistered Firms in the US

According to the US watchdog, the companies have been involved in offering Forex and Binary Options trading services to the US citizens without any valid registration in place. The names of the firms are as follows:

  • Allen Investment Management LLC
  • Forex Entourage LLC
  • HedgeFund4U, LLC
  • Hooley Solutions LLC
  • International Markets Live, Inc.
  • LegionFX LLC
  • The Lion’s Share FX
  • Wealth Generators LLC

The regulator also stated that the charges were filed and settled simultaneously, and the punishments were not detailed.

“The Commodity Futures Trading Commission (CFTC) issued 12 Orders today filing and simultaneously settling charges against various respondents for violations of the Commodity Exchange Act (Act) and Commission Regulations (Regulations), including for position limits, record-keeping, registration, reporting, and failure to supervise violations, as set forth below and as more fully described in the related press releases for each Order.” – The official announcement from the CFTC states.

CFTC Fines NatWest Markets

In addition to the companies listed above, CFTC has fined NatWest Markets- the investment banking arm of The Royal Bank of Scotland Group, with $750,000, for failing to report complete information to the authorities. 

Another entity on this list includes ABN AMRO Clearing Chicago, a futures merchant. The company got $160,000 for supervision/record-keeping violations.

In the same context, Honouround (HK) International Trade of Hong Kong was fined with $300,000 for “exceeding the single month and all-month speculative position limits for soybeans futures contracts traded on the Chicago Board of Trade, and for failing to file Form 204s as required.”

Likewise, Mobius Risk Group was also fined for offering investment services to the US residents without a prior authorisation.

 “These Orders reflect the CFTC’s commitment to protecting the public by enforcing the record-keeping, registration, reporting, and supervision requirements in the Act and Regulations. These requirements are critical to the CFTC’s mission to protect market participants and to ensure market integrity: (i) on the front end, by requiring entities and individuals to register with the CFTC prior to doing business in the commodities markets, (ii) on an ongoing basis by requiring registrants to diligently supervise their employees and ensure compliance with the Act and Regulations, and (iii) on the back end by ensuring proper records are maintained and made available to the CFTC, allowing fraud and other misconduct to be detected and remediated.” , commented James McDonald- CFTC Director of Enforcement.

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