Gain's reply to NFA's complaint

Gain Capital sent this letter to its partners, probably in an effort to allay any fears, following the publication of NFA's severe complaint against the company.

Dear Partner,

Yesterday, GAIN received a notice from our US regulator that included complaints regarding a few select trading practices and policies in our US regulated entity. This resulted from the NFA’s annual audit where they focused particularly on settings for our MetaTrader platform, our longstanding weekend liquidation policy, as well as our oversight of introducing brokers.

I’m writing this note to allay any concerns you may have about our business practices. We strongly maintain there has been no willful misconduct on the part of the firm and intend to contest the allegations which we believe are misstated. We do not deliberately mislead our clients, nor is it ever our intention to put them at a disadvantage. Everyone at GAIN takes great pride in being part of a professional organization and we work hard to treat all our customers with respect. I believe this ethic is shared by our partner network, along with a common goal of providing a world class trading service that has our customers’ best interests in mind.

While we were surprised and disappointed to receive this complaint, we believe this type of NFA action in part reflects the rapidly evolving regulatory framework in the United States. GAIN Capital and its Affiliates Affiliates Affiliates serve as an essential component of a broker’s client acquisition tactics and marketing. One of the most important functions of affiliate marketers is the sending of leads to the broker, which are directly opening an account or visiting the broker’s website. There are several ways in which brokers are compensating affiliates based on the number and type of clients they refer to the company and whether or not or how much they end up depositing.Understanding CPA or Cost Per Acquisition T Affiliates serve as an essential component of a broker’s client acquisition tactics and marketing. One of the most important functions of affiliate marketers is the sending of leads to the broker, which are directly opening an account or visiting the broker’s website. There are several ways in which brokers are compensating affiliates based on the number and type of clients they refer to the company and whether or not or how much they end up depositing.Understanding CPA or Cost Per Acquisition T Read this Term are now regulated in five countries, including the United Kingdom, Australia, Hong Kong, Japan, and the United States. As a global organization, we strive to operate effectively in each jurisdiction despite vastly different rules and, as always, support any and all 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 that serves to effectively protect retail traders.

Should you wish to discuss this matter further or if you have specific questions regarding any of the information included in the NFA’s document, please feel free to contact your relationship manager or Tom Levine at +1.908.731.0737 at your convenience.

Regards,

Glenn Stevens

Chief Executive Officer

GAIN Capital