Stamford, CT – James Deacon, a former employee of Vision Financial Markets LLC, has been charged with failing to adequately supervise commodity interest accounts, according to an order issued by the Commodity Futures Trading Commission (CFTC) on July 12, 2019. The CFTC alleges that between January 1, 2014 and November 30, 2014, Deacon, while employed as part of Vision’s supervisory team, did not ensure proper segregation of trades.
The investigation revealed that Vision Financial Markets LLC, a registered futures commission merchant (FCM) and commodity pool operator based in Stamford, Connecticut, maintained a compliance manual outlining its supervisory system. Despite this, Deacon allegedly failed to adequately oversee employees and agents responsible for executing bunched orders—orders combining multiple transactions.
Specifically, the CFTC found that Vision, under Deacon’s supervision, did not ensure these bunched orders correctly separated the firm’s proprietary trades from customer trades. Furthermore, there was a failure to segregate trades originating from discretionary and non-discretionary accounts belonging to introducing brokers (GIB). The order also states that transactions for non-discretionary GIB customers were sometimes executed without obtaining explicit authorization from those customers.
As a result of these findings, Vision Financial Markets LLC has been ordered to pay a civil monetary penalty of $200,000 and cease any further violations of the Commodity Exchange Act or CFTC Regulations. While the charges primarily target the firm’s practices, Deacon’s role in failing to implement effective supervision was central to the alleged violations.
The case was led by CFTC Division of Enforcement staff members James Deacon, Kara Mucha, Kevin Samuel, James H. Holl III, and Rick Glaser.
Source: CFTC.gov
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