Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) today filed and simultaneously settled charges that Forex Capital Markets Ltd. (FXCM Ltd.) of London, U.K. acted as a retail foreign exchange dealer (RFED) by conducting retail leveraged forex transactions with U.S. customers without registering with the CFTC under the agency’s regulation 5.3(a)(6)(i). FXCM Ltd. has never been registered with the CFTC in any capacity.
The CFTC order requires FXCM Ltd. to pay a $140,000 civil monetary penalty and to cease and desist from further violating CFTC regulation 5.3(a)(6)(i).
Today’s action stems from new regulations that the CFTC enacted on October 18, 2010, implementing certain provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The new regulations also require forex dealers to take steps to protect investors, including maintaining capital and records, to reduce risk and increase transparency. (See CFTC Press Release 5883-10.)
The CFTC order finds that, from October 18, 2010 through October 29, a period of 11 days immediately following implementation of the new regulations, FXCM Ltd. acted as an RFED counterparty to U.S. customers who were non-Eligible Contract Participants in connection with leveraged retail forex transactions without registering as an RFED.
Read more at CFTC.
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