Washington, D.C. – The Commodity Futures Trading Commission (CFTC) has issued an order settling charges against OANDA Corporation for violations of capital, reporting, and supervisory rules. The Toronto-based futures commission merchant (FCM) and retail foreign exchange dealer (RFED) will pay a $500,000 civil monetary penalty and cease further violations of CFTC regulations.
According to the CFTC, OANDA failed to meet minimum net capital requirements and violated restrictions on equity withdrawals while making dividend payments on three occasions – October 15, 2018, April 26, 2019, and May 28, 2019. These violations occurred between October 2018 and August 2019. The company also failed to meet certain financial reporting requirements and did not maintain adequate internal controls, leading to a failure to diligently supervise its business as a CFTC registrant.
“The CFTC’s capital, reporting, and supervision requirements are critical to ensuring market integrity and the protection of customers,” stated James McDonald, Director of the Division of Enforcement. Joshua B. Sterling, Director of the Division of Swap Dealer and Intermediary Oversight, added that capital requirements are a “cornerstone” of regulations governing intermediaries.
The investigation revealed that OANDA did not meet net capital requirements consistently from April 26, 2019, to August 21, 2019. The CFTC acknowledged OANDA’s cooperation throughout the investigation and noted that there was no indication customers suffered financial losses as a direct result of the firm’s violations.
The CFTC thanked the National Futures Association for its assistance in the case. Staff members from the Division of Swap Dealer and Intermediary Oversight, including Kelly Venezia, Robert Loeber, and Gerald J. Nudge, also contributed to the investigation, along with Karin N. Roth, R. Stephen Painter, Jr., Lenel Hickson, Jr., and Manal M. Sultan from the Division of Enforcement.
Source: CFTC.gov
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