RJ O’Brien and Vision Financial fined for client fund segregation issues

RJO fined $125,000 and Vision Financial $525,000, both related to handling of client funds.

Futures brokers RJ O’Brien (RJO) and Vision Financial Markets LLC were each sanctioned by the CFTC for issues tied to client funds.

RJO’s $125,000 fine was for commingling secured foreign futures and options customer funds, with segregated domestic futures and options customer funds.

Vision Financial’s $525,000 fine was for failing to segregate customer funds, failing to notify the CFTC of its under-segregation, and making misstatements to the CFTC about the location and manner in which the customer funds were being held.

While less well known than RJ O’Brien, Vision Financial gained some (positive) notoriety in the forex world when late last year it won a bid for bankrupt PFGBest’s remaining client accounts and funds. Vision took on thousands of customer accounts from PFGBest under an agreement with the trustee unwinding PFGBest, with about $123 million in customer funds moved to Vision. The $123 million represented just about 30% of what clients thought they had at PFGBest when a fraud involving Peregrine group founder Russell Wasendorf Sr. was uncovered.

For the CFTC press release re the RJ O’Brien fine click here.

For the CFTC press release re the Vision Financial fine click here.

For more on the global Forex industry see the LeapRate-Dow Jones Forex Industry Report. 

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