Chicago, IL – ADM Investor Services Inc. (ADMIS), a registered futures commission merchant, will pay $250,000 in penalties and cease further violations of commodity trading regulations, the Commodity Futures Trading Commission (CFTC) announced Thursday.
The CFTC issued an order detailing charges against ADMIS stemming from a period between December 1, 2014, and September 24, 2017. The agency found that ADMIS failed to adequately supervise the handling of commodity interest accounts carried by the firm and introduced by an ADMIS-guaranteed introducing broker (GIB).
According to the order, ADMIS possessed a compliance manual outlining a supervisory system. However, the firm failed to ensure its employees and agents properly segregated trades. Specifically, the investigation revealed failures in three key areas: segregating the GIB’s proprietary trades from customer trades, separating trades from discretionary and non-discretionary GIB customer accounts, and executing orders for non-discretionary customers only with explicit authorization.
The CFTC’s order requires ADMIS to both pay the $250,000 civil monetary penalty and to cease and desist from any future violations of the Commodity Exchange Act or associated CFTC Regulations. The settlement aims to ensure proper oversight of trading activities and protect customer interests.
The case was led by CFTC Division of Enforcement staff members James Deacon, Kara Mucha, Kevin Samuel, James H. Holl III, and Rick Glaser. The investigation highlights the CFTC’s continued focus on enforcing supervisory responsibilities within the commodity futures and options markets.
Source: CFTC.gov
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