FXDD Compliance Officer Fined $75,000 By NFA For Irregularities In AML Procedure
Sunday,28/07/2013|06:35GMTby
Andrew Saks McLeod
Further demonstrating the regulatory effort directed at ensuring that funds received by FX firms are legitimate, the NFA has fined FXDD Chief Compliance Officer James E. Green $75,000 for irregularities brought to light by complaints.
Worldwide regulatory authorities continue their focus on FX firms and their internal practices, most notably the methods by which they exercise care and attention to the handling of client funds and with regard to the procedures in place for ensuring that funds to be held with brokers for the purposes of funding trading accounts originate from genuine and legitimate sources.
On Thursday last week, the National Futures Association prosecuted FX Direct Dealer (FXDD)’s Chief Compliance Officer James E. Green as a result of complaints filed against this particular individual on June 29, 2012 and subsequently October 23, 2012.
The NFA’s panel took the complaints to hearing, and found that Mr. Green was personally responsible for failing to supervise FXDD’s operations including the anti Money Laundering (AML) program, therefore handed down a $75,000 fine to Mr. Green and in addition sought an undertaking from Mr. Green that he would not be employed or act as an AML Compliance Officer for any NFA Member or in a compliance capacity, unless he reports to or is supervised by another person within the Member's compliance department, for a period of one year.
Whilst Mr. Green did not admit or deny the allegations, he agreed to settle this matter in full with the NFA.
Although this particular case involves the NFA having pursued Mr. Green for personal liability, this is not the first time that FXDD finds itself under the regulator’s microscope, the NFA having previously entered into litigation against the firm itself.
In July last year, the NFA issued a charge against FXDD for an alleged violation of rules pertaining to the way in which the company handled a series of accounts.
The resultant cost to FXDD in fines and rectification by crediting customers is somewhat unclear, however the NFA put FXDD in a position whereby the company agreed to putting a potential $3.3 million settlement in to an escrow account December of the same year should the outcome fall on the side of the regulator.
The NFA set in place final rules relating to slippage and re-quoting back in 2010 after irregularities in FXCM’s practices relating to slippage and re-quoting were discovered, costing the firm $16 million in fines collected by the NFA and restitutions to customers.
NFA Inspection Revealed Irregularities
During a visit to FXDD in June 2011, NFA discovered that FXDD had been using asymmetrical price slippage settings since becoming an NFA Member in December 2009.
These asymmetrical slippage settings were activated during the “price check” process when FXDD’s system compared the customer’s tagged price to current market prices. If, after the customer entered his/her order, the market moved in the customer’s favor (“positive slippage”) by no more than two pips, then FXDD would fill the customer at the tagged price.
This particular complaint against FXDD last year cited that, for example, in an IE trade, if a customer requested to buy 100,000 EUR/USD where the bid price on the customer’s computer screen was 1.43 and the ask price was 1.45, the customer would click on the ask price of 1.45 to buy the contract and that would be the tagged price captured on the front-end of FXDD’s system. However, before executing the trade and confirming it to the customer, FXDD would also run the customer’s order through two primary “checks” – a “margin check” and a “price check” – on the back-end of FXDD’s system.
The “margin check” ensures that the customer has adequate funds to make the trade, while the “price check” ensures that when the back-office system receives the customer order that the tagged price remains within certain price parameters based on current market prices. After these “checks” were completed, the complained alleged that FXDD either filled the customer’s trade at the tagged price of 1.45 or rejects the trade.
Worldwide regulatory authorities continue their focus on FX firms and their internal practices, most notably the methods by which they exercise care and attention to the handling of client funds and with regard to the procedures in place for ensuring that funds to be held with brokers for the purposes of funding trading accounts originate from genuine and legitimate sources.
On Thursday last week, the National Futures Association prosecuted FX Direct Dealer (FXDD)’s Chief Compliance Officer James E. Green as a result of complaints filed against this particular individual on June 29, 2012 and subsequently October 23, 2012.
The NFA’s panel took the complaints to hearing, and found that Mr. Green was personally responsible for failing to supervise FXDD’s operations including the anti Money Laundering (AML) program, therefore handed down a $75,000 fine to Mr. Green and in addition sought an undertaking from Mr. Green that he would not be employed or act as an AML Compliance Officer for any NFA Member or in a compliance capacity, unless he reports to or is supervised by another person within the Member's compliance department, for a period of one year.
Whilst Mr. Green did not admit or deny the allegations, he agreed to settle this matter in full with the NFA.
Although this particular case involves the NFA having pursued Mr. Green for personal liability, this is not the first time that FXDD finds itself under the regulator’s microscope, the NFA having previously entered into litigation against the firm itself.
In July last year, the NFA issued a charge against FXDD for an alleged violation of rules pertaining to the way in which the company handled a series of accounts.
The resultant cost to FXDD in fines and rectification by crediting customers is somewhat unclear, however the NFA put FXDD in a position whereby the company agreed to putting a potential $3.3 million settlement in to an escrow account December of the same year should the outcome fall on the side of the regulator.
The NFA set in place final rules relating to slippage and re-quoting back in 2010 after irregularities in FXCM’s practices relating to slippage and re-quoting were discovered, costing the firm $16 million in fines collected by the NFA and restitutions to customers.
NFA Inspection Revealed Irregularities
During a visit to FXDD in June 2011, NFA discovered that FXDD had been using asymmetrical price slippage settings since becoming an NFA Member in December 2009.
These asymmetrical slippage settings were activated during the “price check” process when FXDD’s system compared the customer’s tagged price to current market prices. If, after the customer entered his/her order, the market moved in the customer’s favor (“positive slippage”) by no more than two pips, then FXDD would fill the customer at the tagged price.
This particular complaint against FXDD last year cited that, for example, in an IE trade, if a customer requested to buy 100,000 EUR/USD where the bid price on the customer’s computer screen was 1.43 and the ask price was 1.45, the customer would click on the ask price of 1.45 to buy the contract and that would be the tagged price captured on the front-end of FXDD’s system. However, before executing the trade and confirming it to the customer, FXDD would also run the customer’s order through two primary “checks” – a “margin check” and a “price check” – on the back-end of FXDD’s system.
The “margin check” ensures that the customer has adequate funds to make the trade, while the “price check” ensures that when the back-office system receives the customer order that the tagged price remains within certain price parameters based on current market prices. After these “checks” were completed, the complained alleged that FXDD either filled the customer’s trade at the tagged price of 1.45 or rejects the trade.
Retail Trading & Prop Firms in 2025: Five Defining Trends - And One Prediction for 2026
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
