FXCM from its home US market, as well as a permanent registration ban for CEO Drew Niv pictured above. FXCM, Niv, and co-founder William Ahdout are prohibited from registering with the CFTC, acting in exempt capacities or acting as principals, agents, officers or employees of registrants. FXCM is or rather, was the leading market share retail forex dealer in the US, as well as the largest ex-Japan broker worldwide.

LIONS OF FOREX

The Order finds FXCM, FXCM Holdings, and Niv responsible for FXCM making false statements to the National Futures Association NFA about its relationship with the market maker. FXCM, Niv, and Ahdout agree to withdraw from CFTC registration; never to seek to register with the CFTC; and never to act in any capacity requiring registration or exemption from registration, or act as a principal, agent, officer, or employee of any person that is registered, required to be registered, or exempted from registration with the CFTC.

FXCM has been providing retail customers with access to over-the-counter forex markets through a proprietary technology platform and has acted as counterparty in transactions with its retail customers in which customers can buy one currency and simultaneously sell another.

Both Niv and Ahdout were CFTC registrants during the relevant period. Although FXCM eventually spun off the algorithmic trading system as a new company, in actuality the company remained closely aligned with FXCM, according to the Order. The CFTC thanks NFA for its assistance in this matter. CFTC fine Drew Niv fraud FXCM ban FXCM Inc NASDAQ: He is not the first one to do this. I can list about 10 others that do the same. All are Cyprus based brokers.

That is the ONLY reason they are still alive today. All these distractions about reducing leverage, negative balance protection, etc do not actually promote transparency.

Gain Capital apparently has been more forthcoming with the fact that they are technically a bucket shop, so they are still standing. How a broker operates behind the scenes is irrelevant, I trade with many broker some I know are taking the other side of my deals but so long as the execution and pricing is good who really cares. Furthemore, there is nothing wrong with re-quoting a price as long as its a fair price and can be benchmarked against 3rd party sources such as EBS…..

If you read between the lines this was a great out for FXCM as they US market accounted for only a small part of their business and the regulatory capital was eating into their balance sheet. FXCM are not going down or collapsing, in-fact I believe that this will in-fact help them.

There is a HUGE problem with requoting a client AFTER the trade is already executed. This means the price quoted them was never valid in the first place…. It defeats the entire purpose of streaming quotes. Certainly they had the ability to re-quote or reject the order AT THE TIME. And what has gotten brokers and traders into this mess in the first place…..

If the broker was required to provide full round trip post trade reporting for all transactions done within the last 14 days, we could have caught all of this much earlier. No debt can be generated from stock anymore as that is worthless without a US CFTC license.

Doubt that FXCM can recover from this. They were barely scraping by repaying Leucadia. This should finish them off. Might be time for someone else to try and salvage things for Leucadia. All the sharks are doing this.

Many retail brokers use FXCM as their hedge counterparty. I wonder what will happen, will they all pull their money? Is FXCM regulated outside of the USA? Is there a wind down period for them to leave the USA?

No forex malfeasance at Standard Bank, says CEO

Para C-1 says that they cannot accept any new [US] retail clients. It is unclear to me if Eligible Contract Participants are exempt. But basically CFTC kicked them out of USA.

FXCM has regulation in other parts of the world, including UK and Au. Their ability to provide as a liquidity provider e. Takeover target now perhaps?

Forex Peace Army CEO Dmitri Chavkerov Believes in Thinking Big -

But then again who would want them with such a terrible loan agreement in place with Leucadia. Leaprate, look at the list of regulated brokers which you are affiliates of. Every insider in the industry knows this from brokers to PBs to technology providers.

As industry insiders you should also know this. FXCM is getting the rap for it and so they should — hopefully this spreads to all the other regulators and they enforce rules on brokers to be honest with clients about their trade execution. The whole thing was a deliberate and elaborate scheme conspired by Drew and Co. Other who do this are not as elaborate in their scheme. Sure — the intent is still the same though. And I thought, FXCM is one of the reputable ones.

Also, they kind of were staging a come back from their close brush with bankruptcy. Join now to receive first access to our EXCLUSIVE reports and updates. Screenshot of a breaking news alert e-mail from Q2 Please check your email to confirm your subscription. We hate SPAM and promise to keep your email address safe. Subscribe FREE To Our Industry Leading Email Newsletter: Close Menu Send a Tip Contact Newsletter.

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Citigroup traders Stephen Gola and Jonathan Brims banned 6 months and fined for US Treasury spoofing. Admire the idiot who lead to bankruptcy a multi-million dollar company. Not to mention business partners [worldwide] that will distance themselves from the scandal.

Fat Lady is Singing. Then FXCM or Leucadia is really faked. Who are the directors? Does anyone know if the FCA will kick them out of the UK now?

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