FCM Sanctioned For Recordkeeping Violations

A New York-based futures commission merchant settled charges with the CFTC that it failed to meet recordkeeping requirements that were mandated by the Commodity Exchange Act and by CFTC Regulations.

According to the Order, Ikon Global Markets, Inc. ("Ikon") entered into thousands of gold Exchange-for-Physical ("EFP") trades with a certain customer. Allegedly, Ikon entered into "privately negotiated and simultaneous" trades of a position in a gold futures contract in exchange for a "corresponding and offsetting position in gold." The CFTC alleged that Ikon failed to produce several required documents, including records for the EFP trades, after the CFTC Division of Enforcement issued two separate subpoenas requesting the records related to the gold futures contract. As a result of this alleged failure to maintain and produce the requested records, the CFTC charged Ikon with violations of CEA Section 4g(a) and CFTC Rules 1.31(a)(1) and (2).