Retail forex broker FXDD and the US National Futures Association (NFA) have agreed on a $500,000 settlement relating to administrative issues, as FXDD has been in process of exiting the US retail forex market making business to act as an introducing broker in the US.
As we reported earlier, FXDD sold its US business to FXCM back in May for $4.4 million, freeing up more than $20 million in capital for FXDD to focus on faster growing markets overseas.
The settlement relates to administrative charges the NFA levied back in September regarding FXDD’s AML (anti-money laundering) procedures, offset transactions, filing of its financial statements in a timely manner, and use of promotional materials.
FXDD also voluntarily withdrew as a provisionally registered Swap Dealer and market maker, and going forward will operate in the US only as an IB, provisions relating to the sale of its client base to FXCM and the subsequent change of its US regulatory status, as per above.
FXDD gave us a statement on the settlement:
We are pleased to announce that we have reached a settlement agreement with the National Futures Association (NFA) regarding our regulatory status in the U.S.
Effective December 9, 2014, we have voluntarily withdrawn our licenses and are officially no longer operating as a Futures Commission Merchant (FCM), Forex Dealer Member (FDM) or Swap Dealer in the U.S. We will retain our registration as an introducing broker (IB) and will be regulated by the NFA as an IB only.
This settlement has no effect on our international business. We remain committed to our international expansion plans and serving the needs of self directed and institutional traders outside the U.S. Our global headquarters remains in New York City at 7 World Trade Center.
We reached this agreement in cooperation with the NFA and value their partnership in this effort.
The NFA news release on the settlement can be seen here.