The Commission found that that with her actions, McDowell acted as a CTA but she was not registered as required by the Commodity Exchange Act (CEA). Additionally, McDowell also made material misrepresentations about her services and omitted significant facts about her use of client funds and the profits purportedly earned by her clients. The regulator…
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Additionally, the regulator accused HSBC’s subsidiary of attempting to manipulate on-screen prices, which were partly based on issuer swaps, by engaging in spoofing activities with interdealer brokerages that controlled the screens. Spoofing involves placing orders with the intention of canceling them before execution, constituting fraudulent behavior. According to the CFTC, HSBC traders deliberately traded at…
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As per the regulator's statement, Steynberg, the CEO of Mirror Trading International Proprietary Limited (MTI) allegedly used Bitcoin (BTC) payment to lure investors into the commodity pool, as per the regulator's statement. Despite this, MTI, which was founded and headed by Steynberg, has failed to register itself as a commodity pool operator (CPO) and comply…
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According to CFTC’s filling, Goldman made transactions of dozens of “same-day” equity index swaps with US-based clients in 2015 and 2016. The "same-day" equity index swap involves striking the equity leg on the day that the other key terms of the swap are agreed upon, instead of the following day, which is the usual practice.…
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FINRA stated: For example, the firm approved more than 2,500 customers under the age of 21 to trade options spreads, even though the firm’s eligibility criteria required customers to have at least three years of options trading experience before being approved for that trading level. FINRA also discovered that Webull's system for identifying and responding…
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In the beginning of 2018, GT Bank stopped taking on new customers. Given the FCA’s concerns, the bank agreed to wider voluntary restrictions on business later the same year. These additional requirements remained in place until mid-2021. They were lifted then GT Bank remediation plan, which was checked by an independent third party. The FCA…
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The CFTC stated that one of CHS Hedging’s customers engaged in speculative trading that sustained millions of dollars in losses in their company account from January 2017 through December 2020. The customer and their company made margin payments of more than $147 million to CHS Hedging over the course of that period. The CFTC found…
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TSB’s IT migration plan was ambitious and complex, carrying a high level of risk. The FCA noted that the company failed to organise and control the migration process adequately. Both agencies, the FCA and PRA prioritise operational resilience. Mark Steward, FCA Executive Director of Enforcement and Market Oversight said: The failings in this case were…
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In the official announcement, FCA alleges the bank was aware of its incorrect submission but did not offer an explanation in the quarterly update. The FCA stated: Metro Bank also failed to consider, and to seek legal advice on, whether the incorrect RWA figure ought to be qualified or explained in the October Announcement. As…
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Gain Capital stopped the system malfunction but before it had done so it had incurred a loss of about $3 million. The company also made negative adjustment of the accounts of 17 customers by about $2.84 million and the positive adjustment of 33 customer accounts by about $35,000. These actions were approved by Gain Capital's…
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