The Commodity Futures and Trading Commission (CFTC) announced settling charges Marex North America LLC, based in New York and Marex Spectron International Limited in London for failing to meet adjusted net capital requirements.
The US watchdog found that Marex and Marex Spectron improperly accounted for deductions from an agreement they entered to guarantee a revolving line of credit for an affiliated company when computing their adjusted net capital.
During the period in which the companies were guarantors, funds in amounts ranging from $10 million to $95 million, were periodically drawn on the line of credit for the benefit of the affiliated company. However, neither of the two firms deducted the amount of the guaranteed drawdowns in their calculation of adjusted net capital as required.
