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ARTICLE · 04 OCTOBER 2016

CFTC Charges Introducing Broker With Recordkeeping And Supervisory Failures

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The CFTC charged an introducing broker ("IB") and its majority owner and sole principal with supervisory and registration failures.

United StatesFinance and Banking
Robert Zwirb
Robert Zwirb
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The CFTC charged an introducing broker ("IB") and its majority owner and sole principal with supervisory and registration failures. The enforcement action was filed in the U.S. District Court for the Southern District of New York.

The IB's business involved receiving trading instructions from third-party trading systems and placing buy-and-sell orders for commodity interest transactions on behalf of customers who subscribed to the trading systems.

In its Complaint against the defendants, the CFTC asserted that the IB and its majority owner failed to:

  • keep and produce the trading instructions it received electronically on behalf of customers who subscribed to third-party trading systems for which the IB provided execution services;

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