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NFA Fines StoneX Markets $1 Million for Compliance Failures

by Arnab Shome
  • The company agreed to settle but did not accept or deny the allegations.
  • Earlier, NFA slammed penalty on GAIN Capital, another subsidiary of StoneX Group.
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The National Futures Association (NFA) has fined swap dealer member StoneX Markets LLC, a subsidiary of StoneX Group, $1 million for multiple charges of compliance violations. According to the official order letter published on Thursday, StoneX Markets agreed to settle the charges by paying the fine.

NFA Fines StoneX Markets

The NFA is a self-regulatory organization in the United States that oversees activities in the derivatives industries, covering on-exchange traded futures, retail off-exchange foreign currency, and OTC derivatives. All regulated derivatives providers in the US must obtain membership in the self-regulatory agency.

The Business Conduct Committee of the NFA issued complaints on four counts against StoneX. The company was blamed for failing to provide timely and complete disclosure to counterparties for not calculating the initial margin under customary procedures; failure to maintain and enforce an adequate risk management program; failure to retain required records and provide pre-trade mid-market marks; and finally, failure in supervision.

Check out the latest FMLS22 session on "Regulation Roundup."

StoneX Did Not Agree or Deny the Allegations

The order further highlighted that the committee had found StoneX Markets violating all the charges. The company agreed to settle but did not accept or deny the allegations.

“This Decision and the Offer shall not be used as a sole basis for any other action or proceeding by NFA against Stone, including any registration matter, except this Decision and the Offer may be used in an action to enforce the terms thereof or in a subsequent disciplinary action or regulatory action, where they may be considered as disciplinary history and as evidence in aggravation on the issue of sanction,” the order stated.

Last month, the NFA penalized GAIN Capital Group LLC, an operator of two retail forex brokerage brands, with $700,000 for multiple compliance violations by its brand Forex.com. Moreover, GAIN is a subsidiary of the broader StoneX Group. Last year, the NFA also fined several other major US brands like Interactive Brokers, Coquest, and an introducing broker Marex.

The National Futures Association (NFA) has fined swap dealer member StoneX Markets LLC, a subsidiary of StoneX Group, $1 million for multiple charges of compliance violations. According to the official order letter published on Thursday, StoneX Markets agreed to settle the charges by paying the fine.

NFA Fines StoneX Markets

The NFA is a self-regulatory organization in the United States that oversees activities in the derivatives industries, covering on-exchange traded futures, retail off-exchange foreign currency, and OTC derivatives. All regulated derivatives providers in the US must obtain membership in the self-regulatory agency.

The Business Conduct Committee of the NFA issued complaints on four counts against StoneX. The company was blamed for failing to provide timely and complete disclosure to counterparties for not calculating the initial margin under customary procedures; failure to maintain and enforce an adequate risk management program; failure to retain required records and provide pre-trade mid-market marks; and finally, failure in supervision.

Check out the latest FMLS22 session on "Regulation Roundup."

StoneX Did Not Agree or Deny the Allegations

The order further highlighted that the committee had found StoneX Markets violating all the charges. The company agreed to settle but did not accept or deny the allegations.

“This Decision and the Offer shall not be used as a sole basis for any other action or proceeding by NFA against Stone, including any registration matter, except this Decision and the Offer may be used in an action to enforce the terms thereof or in a subsequent disciplinary action or regulatory action, where they may be considered as disciplinary history and as evidence in aggravation on the issue of sanction,” the order stated.

Last month, the NFA penalized GAIN Capital Group LLC, an operator of two retail forex brokerage brands, with $700,000 for multiple compliance violations by its brand Forex.com. Moreover, GAIN is a subsidiary of the broader StoneX Group. Last year, the NFA also fined several other major US brands like Interactive Brokers, Coquest, and an introducing broker Marex.

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