CFTC Fines IB Foremost Trading $400,000 For Supervision Shortcomings
- American introducing broker Foremost Trading has been issued with a $400,000 civil monetary penalty by the CFTC as a result of deficiencies in its supervision of the handling of trading accounts.
The U.S. Commodity Futures Trading Commission (CFTC) issued an order, filing and settling charges against Foremost Trading that is a registered introducing broker, based in Geneva, Illinois, for failing to diligently supervise the handling of certain trading accounts by its officers, employees, and agents.
The CFTC Order requires Foremost Trading to pay a $400,000 civil monetary penalty, and cease and desist from violating CFTC Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term 166.3, as charged.
Specifically, the CFTC Order finds that Foremost Trading failed to diligently supervise its officers’, employees’ and agents’ handling of accounts held by clients, that were referred to Foremost from three unregistered entities that sold futures trading systems (the Systems Providers). Foremost’s officers, employees and agents ignored warning signs that the Systems Providers were procuring their clients through fraudulent means and engaging in fraudulent business practices, the Order finds.
Foremost’s personnel received complaints and information from clients about the apparently fraudulent misrepresentations made by the Systems Providers, and the unscrupulous business practices in which the Systems Providers were engaged, however, failed to fully investigate all these claims or inform clients or prospective clients about these claims, the Order finds. Foremost continued to open accounts for clients referred by the Systems Providers, and additionally, on numerous occasions, Foremost vouched for the Systems Providers’ track records in conversations and correspondence with clients, according to the Order.
As well as tightening the regulatory structure that surrounds retail and institutional FX companies, the US authorities have their eyes also directed toward introducing brokers and white label partners, as borne out by this substantial penalty. Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Magnates reported earlier this year, that the CFTC had also begun the process of reviewing the methods by which client funds are transmitted between FX companies and introducers of business.
The U.S. Commodity Futures Trading Commission (CFTC) issued an order, filing and settling charges against Foremost Trading that is a registered introducing broker, based in Geneva, Illinois, for failing to diligently supervise the handling of certain trading accounts by its officers, employees, and agents.
The CFTC Order requires Foremost Trading to pay a $400,000 civil monetary penalty, and cease and desist from violating CFTC Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term 166.3, as charged.
Specifically, the CFTC Order finds that Foremost Trading failed to diligently supervise its officers’, employees’ and agents’ handling of accounts held by clients, that were referred to Foremost from three unregistered entities that sold futures trading systems (the Systems Providers). Foremost’s officers, employees and agents ignored warning signs that the Systems Providers were procuring their clients through fraudulent means and engaging in fraudulent business practices, the Order finds.
Foremost’s personnel received complaints and information from clients about the apparently fraudulent misrepresentations made by the Systems Providers, and the unscrupulous business practices in which the Systems Providers were engaged, however, failed to fully investigate all these claims or inform clients or prospective clients about these claims, the Order finds. Foremost continued to open accounts for clients referred by the Systems Providers, and additionally, on numerous occasions, Foremost vouched for the Systems Providers’ track records in conversations and correspondence with clients, according to the Order.
As well as tightening the regulatory structure that surrounds retail and institutional FX companies, the US authorities have their eyes also directed toward introducing brokers and white label partners, as borne out by this substantial penalty. Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Magnates reported earlier this year, that the CFTC had also begun the process of reviewing the methods by which client funds are transmitted between FX companies and introducers of business.