NFA fines Chicago-based XFA $75,000 and relegates it to introducing broker status

The self-regulatory organization for the U.S. derivatives industry, National Futures Association (NFA), has barred Chicago, Illinois based X-Change Financial Access LLC (commonly known as ‘XFA’) from operating as a futures commission merchant (or ‘FCM’), allowing XFA to only operate as an NFA Member introducing broker.

In addition, the NFA has ordered XFA to pay a $75,000 fine.

XFA introducing brokerXFA calls itself an industry-leading agency trade execution services firm for global exchange-traded derivatives.

The NFA found that XFA’s risk management policy failed to adequately address all risk areas, including capital risk. In addition, the NFA found that XFA failed to take adequate steps to assess and monitor the risks associated with the accounts of customers who trade in volatile markets, where losses may accumulate quickly and generate margin calls.

The Decision, issued by NFA’s Business Conduct Committee, is based on a complaint authorized by the committee on September 29, 2015, and a settlement offer submitted by XFA and two of its principals.

The complete text of the Complaint and Decision can be viewed on the NFA’s website.

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