CFTC Settles Charges against FX Trading, LLC for Failing to Maintain Minimum Net Capital Required for Futures Commission Merchants

The U.S. Commodity Futures Trading Commission (CFTC) today announced that a federal court entered a consent order requiring FX Trading, LLC(FX Trading), of Iselin, N.J., to pay a $110,000 civil monetary penalty for failing to satisfy the minimum financial requirements for CFTC-registered futures commission merchants (FCMs). FX Trading has been registered with the CFTC as an FCM since October 14, 2005.

The consent order stems from a CFTC enforcement action filed on December 7, 2005, alleging that, since at least October 31, 2005, FX Trading failed to comply with the minimum net capital requirements it must meet as a CFTC-registered futures commission merchant (see CFTC Press Release 5144-05, December 15, 2005). Net capital requirements are designed to ensure customer protection and the financial stability of the marketplace, among other things.

The order, entered on May 9, 2011, by Judge Jose L. Linares of the U.S. District Court for the District of New Jersey, permanently prohibits FX Trading from further violations of the Commodity Exchange Act (CEA) or CFTC regulations.

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