Plantation, Florida-based IBFX, Inc., formerly known as TradeStation Forex, Inc., has agreed to pay a $1 million penalty to settle charges brought by the Commodity Futures Trading Commission (CFTC) for regulatory failures. The settlement, finalized on March 14, 2016, stems from violations of CFTC regulations related to minimum capital requirements and supervisory practices.
According to the CFTC’s order, IBFX failed to maintain sufficient capital between January 15, 2015, and February 5, 2015. The company also did not inform the CFTC of this undercapitalization, a direct violation of established rules. Furthermore, the CFTC found that IBFX did not adequately supervise its employees, contributing to the regulatory breaches.
This settlement also addresses a prior CFTC order issued against IBFX on December 10, 2014, indicating a pattern of non-compliance. The current charges allege IBFX violated the terms of that previous order.
The CFTC acknowledged IBFX’s prompt remedial actions after discovering the deficiencies and its cooperation with the investigation. These factors were considered in determining the penalty amount. The National Futures Association (NFA) provided assistance to the CFTC’s Division of Enforcement throughout the investigation.
The case was led by CFTC staff members George Malas, Traci Rodriguez, Timothy J. Mulreany, and Paul Hayeck. IBFX is a wholly owned subsidiary of TradeStation Group, Inc. and is registered with the CFTC as a Retail Foreign Exchange Dealer (RFED).
Source: CFTC.gov
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