California-based Introducing Broker (IB) Avail Trading Corp. has been issued a complaint from the National Futures Association (NFA), according to updated information from the independent US futures market regulatory organization based in Chicago.
NFA noted that it had become aware of the bankruptcy process that Avail Trading had started earlier this year, as it related to its net-capital requirement and a legal action from a client who had sued over losses – prompting the firm to seek bankruptcy protection.
Finance Magnates wrote about those stories in detail as they unfolded before the parties eventually reached a settlement. The firm has yet another matter to settle requiring its response to the NFA complaint within 30 days.
30 Days to Respond
The complaint was issued by the NFA’s Business Conduct Committee (BCC) against Avail Trading and its principal David Manoukian, and summarized its allegations under NFA Rule 2-9 and NFA Compliance Rule 2-39(a), and with violations of NFA Compliance Rule 2-36(e).
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The NFA action against Avail Trading concerns a number of alleged violations including the firm failing under net- capital requirements, the method of first-in-first-out (FIFO) order routing, a failure to supervise, and failing to observe high standards of commercial honor, among other items noted in the complaint.
Vincent Capital Group LLC
The NFA made a parallel announcement related to a different company, Vincent Capital Group LLC, with the BCC issuing a complaint that the firm and its principal failed to comply with a decision of an NFA Hearing Panel and how the firm failed to diligently supervise its activities and used unbalanced promotional material.
The NFA actions against Vincent Capital were summarized as general conduct and sales practices related, and the complaint gives the firm 30 days to respond – by the end of this month.