ILQ settles minor complaint with the NFA, pays $50k

Last month NFA issued a complaint against ILQ charging it with offsetting forex trades with unregulated counterparties; failing to report counterparties
Photo: Michael Greenberg

Last month NFA issued a complaint against ILQ charging it with offsetting forex trades with unregulated counterparties; failing to report counterparties to NFA; failing to uphold high stadards of commercial honor and just and equitable principles of trade; allowing an unregistered individual to act in a capacity requiring registration as an AP; and allowing an individual who was not approved as a forex AP by NFA to commence forex activities.

Reading into the complaint showed that it wasn’t anything interesting and it dealt more with technicalities than with actual deficiencies. Today this comes to a quick end as ILQ settled this complaint paying just $50k. The amount is negligible comparing to the usual amounts NFA ‘charges’ its members.

On July 18, 2012, ILQ submitted its Offer in which it agreed to pay a $50,000 fine to NFA. In addition, ILQ agreed to adopt and execute procedures to ensure compliance with requirements governing the offsetting of forex trades and the registration of individuals and entities engaged in forex trading.

In making its Offer, ILQ neither admitted nor denied the allegations made against it in the Complaint, but consented to the use of the Offer and this Decision to enforce the terms of the Decision and to show its disciplinary history in any future disciplinary or regulatory proceeding.

The Committee, having considered this matter and having accepted the Offer made by ILQ orders as follows:

1. ILQ shall pay a fine of $50,000 to NFA within 30 days of the date of issuance of this Decision.

2. Within 60 days of the date of issuance of this Decision, ILQ shall adopt and execute specific written procedures, which it will provide to NFA, related to:

a. ensuring that all counterparties that it uses to offset forex trades are acceptable counterpart|es under Commodity Futures Trading Commission (“CFTC”) and NFA requirements; and

b. ensuring that no individual or entity is permitted by ILQ to act in regard to forex trading in a manner requiring any type of registration and/or approval from the CFTC and/or NFA unless such individual or entity has the required registration and/or approval.

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