Federal Judge Refuses to Dismiss TP ICAP FX Options Fraud Charges


A federal judge has dismissed TP ICAP FX Options Fraud Charges brought by the CFTC, as judicial documents show. The U.S regulator says that the “flying prices” and “printing trades” practices were a key part of TP ICAP’s brokerage activity.

23 January, 2020 | AtoZ Markets – The Commodity Futures Trading Commission (CFTC) accused TFS-ICAP of advertising false bids, offers and trades in the FX Options market. Judge Victor Marrero of the Southern District Court of New York refused to dismiss the CFTC claim against TFS-ICAP LLC and TFS-ICAP Ltd. The judge, however, was satisfied with the CFTC’s explanation of the limits of the relief it seeks from TFS-ICAP.

TFS-ICAP LLC And TFS-ICAP Ltd Failed to Dismiss the CFTC Complaint

The CFTC complaint claims that the brokers at the TFS-ICAP’s US and UK offices attempted to deceive their customers from 2008 to 2015. They adopted the practice of fake bids, offers and fake trades in the FX Options market. The CFTC complaint claims that the practices, known as “flying prices” and “printing trades”, were a key part of TFS-ICAP’s brokerage business.

TFS-ICAP LLC and TFS-ICAP Ltd have opposed the CFTC claim and said that it contains several deficiencies. According to the court order signed by Judge Marrero on January 21, 2020, the arguments of the corporate defendants were not sufficient to dismiss the CFTC claim.

TFS-ICAP with non-US market participants had a direct and significant connection with or affected US commerce activities. The Court said it was satisfied with the explanation of the CFTC on the limit of relief that it asks TFS-ICAP. In particular, the requested relief addresses actions during the period when TFS-ICAP brokered FX options for US customers.

Read More: CFTC Fines Daewoo Securities $700,000 For Spoof Trading

CFTC’s Complaint Provided Enough Information Says Federal Judge

Furthermore, the judge ruled that the CFTC complaint complies with Rule 9 (b). It refers to specific occurrences of flying prices and printing trades. The complaint includes details of the print trades of April 15, 2015, May 12, 2015, and July 20, 2015. The complaint also contains the details of a flown price of April 4, 2014.

The purpose of Rule 9 (b) is to provide the defendant with a fair warning of the plaintiff’s claim. According to the judge, the CFTC’s complaint provided enough information to allow the accused to respond. For this reason, the judge refuses to dismiss TP ICAP FX options fraud charges. In early January, the court also rejected the filing motion of TFS-ICAP chief executive officer, Ian Dibb.

Think we missed something? Let us know in the comments section below.

    Share Your Opinion, Write a Comment