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ARTICLE · 03 NOVEMBER 2021

CFTC Introducing Broker Settles NFA Charges For Records And Registration Violations

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A CFTC-registered introducing broker settled NFA charges for failing to maintain complete records and allowing an unregistered individual to operate as an associated person.

United StatesFinance and Banking
Hogan Lovells Cadwalader
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A CFTC-registered introducing broker settled NFA charges for failing to maintain complete records and allowing an unregistered individual to operate as an associated person ("AP").

As described in the Complaint, NFA found that the firm (i) failed to record its branch office APs' oral communications and SMS text messages and (ii) permanently deleted, in at least eight instances, an AP's chat messages, in violation of NFA Compliance Rule 2-10(a) ("Recordkeeping"). In addition, the firm's CEO was not a registered AP, in violation of NFA Bylaw 301(b) ("Registration of Associates").

NFA stated that that firm's supervisory deficiencies violated NFA Compliance Rule 2-9(a) ("Supervision"), including that the firm:

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