LeapRate has learned that the National Futures Association (NFA) has this week brought a series of administrative charges against FXDD, which range from alleged inadequacies in investigating what the NFA regards as being suspicious activity in several customer accounts and violations relating to the requirement to implement an adequate anti money laundering (AML) plan, as well as referring back to the situation in June 2012 which arose in which the NFA charged FXDD with making gains from assymetrical price slippage.
This complaint comes several months after FXDD exited the US market, having sold its US client book to FXCM for $4.4 million.
The majority of the charges leveled at the firm appear to be mostly administrative measures, centering around internal practices within the company. There were five official ‘counts’ listed, including:
- adequacy of its anti-money laundering (AML) program, citing several cases where residence and ID cards (e.g. drivers license) didn’t match,
- offsetting positions on a FIFO basis, as required by NFA rules,
- filing of its financial statements a few weeks late on a couple of occurrences,
- promotional and marketing materials not distinguishing properly between FXDD US and FXDD Malta, its EU regulated entity, and
- general operations supervision.
Again, mainly what we would term ‘admin’ issues.
We’ll have more details and insight as this develops. But as FXDD is on its way out of the US market, we would expect these issues to be quietly resolved between FXDD and the NFA in the coming weeks.
A copy of the NFA complaint against FXDD can be downloaded here.