The National Futures Association (NFA) has fined Oanda Corporation $600,000 for multiple regulatory violations, including capital requirement breaches and supervisory failures.
Oanda Fined $600k By the National Futures Association
The New York-based retail foreign exchange dealer, which is owned by proprietary trading firm FTMO, agreed to the settlement without admitting or denying the allegations, according to a decision published by the NFA’s Business Conduct Committee (BCC) on Wednesday.
The BCC found that Oanda failed to properly increase its net capital in accordance with liabilities owed to eligible counterparties, incorrectly calculated capital positions by offsetting foreign exchange exposure with an affiliate, and failed to collect necessary security deposits from that affiliate.
The actions are said to have caused Oanda to fall short of minimum capital requirements, breaching several sections of the NFA’s Financial Requirements.
The NFA also cited Oanda for additional violations, including failing to collect the correct security deposits from customers for certain transactions, failing to observe just and equitable principles due to a pricing display issue that affected certain customers, using deficient promotional material, and failing to supervise.
In addition to the fine, the BCC ordered Oanda to pay restitution to affected customers.
