May 29, Chicago—NFA has ordered OANDA Corporation (OANDA), an NFA Member retail foreign exchange (forex) dealer and futures commission merchant headquartered in New York, N.Y., to pay a $600,000 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 OANDA, in which the firm neither admitted nor denied the allegations in the Complaint.
The BCC charged OANDA with failing to increase the firm’s net capital by 10% of all liabilities owed to an eligible contract participant counterparty, improperly offsetting the foreign currency exposure on transactions executed with an affiliate to determine net capital positions and required capital deductions, and failing to collect required security deposits from an affiliate on its forex transactions with the firm, which resulted in OANDA failing to maintain minimum net capital. As a result, the BCC charged OANDA with violations of NFA Financial Requirements Sections 11(a), 11(c) and 12(a).
The BCC also charged OANDA with failing to collect the correct security deposits from customers for certain transactions, in further violation of NFA Financial Requirements Section 12(a), failing to observe just and equitable principles due to a pricing display issue that affected certain customers, using deficient promotional material, and failing to supervise, in violation of NFA Compliance Rules 2-36(c), 2-36(g) and 2-36(e), respectively.
In its Decision, the BCC found that OANDA violated NFA Financial Requirements Sections 11(a), 11(c) and 12(a), and NFA Compliance Rules 2-36(c), 2-36(g) and 2-36(e). The BCC also ordered OANDA to pay restitution to certain customers, in addition to the monetary fine.
The complete text of the Complaint and Decision can be viewed on NFA’s website.
Source: National Futures Association
Lawyers Write the Bets. Bankers Sell the Bets. 