Marex to pay $370K to settle charges with the CFTC

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.

CFTC penalty

The CFTC requires Marex and Marex Spectron to pay a fine in the amounts of $250,000 and $120,000, respectively. Both entities would also cease and desists form any further violations of the regulations.

Division of Enforcement Director James McDonald commented:

James McDonald, CFTC

James McDonald
Source: LinkedIn

The Division of Enforcement will remain vigilant in enforcing minimum capital requirements for registered entities as they serve as important safeguards for the industry and its customers.

Division of Swap Dealer and Intermediary Oversight Director Joshua B. Sterling added:

We will continue to work closely and cooperatively with the Division of Enforcement to address deficiencies in required minimum adjusted net capital.

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