Braemar Securities is in the spotlight after the National Futures Association (NFA) imposed a fine of $140,000 against the London-based broker. This penalty is in response to Braemar Securities' alleged failure to meet communication recordkeeping obligations and the improper disclosure of customers' confidential information.

In an email to Finance Magnates, the NFA's Business Conduct Committee highlighted that Braemar Securities' failure to comply with communication recordkeeping obligations violated the regulator's rules. The policies require that companies maintain transparent and accurate communication records.

Braemar Securities Grapples with NFA Violations

Additionally, Braemar Securities allegedly failed to disclose customers' confidential non-public information. The NFA has reportedly found merit in these charges. The regulator has emphasized the importance of safeguarding clients' sensitive data and the potential consequences of compromised confidentiality.

The third charge against Braemar Securities involved the failure to supervise, which violated the NFA's compliance requirements. The regulator's decision highlighted the responsibility of financial institutions to ensure supervision protocols, maintain compliance, and uphold the integrity of the financial markets.

NFA orders London, United Kingdom introducing broker Braemar Securities LTD to pay a $140,000 fine https://t.co/NhPQpe9TdT pic.twitter.com/AKe1RC1EFj

— NFA News (@NFA_News) November 15, 2023

At the beginning of the year, the NFA fined StoneX $1 million for a series of alleged compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term failures. The regulator issued the fine after StoneX Markets agreed to settle the charges, neither accepting nor denying the allegations. This followed a separate fine by the NFA imposed on GAIN Capital, another subsidiary of StoneX Group.

NFA Fines Impact Multiple Firms

The NFA's Business Conduct Committee raised four charges against StoneX Markets, accusing the company of failing to provide timely and complete disclosure to counterparties, neglecting customary procedures for initial margin calculation, and inadequately enforcing risk management programs.

The committee identified a system malfunction on the Forex.com trading platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term, which lasted from March 31, 2021, to April 1, 2021. During this period, customers were able to execute stop and limit orders, but the platform allegedly failed to display the current published prices. Reportedly, GAIN Capital incurred a loss of approximately $3 million due to this malfunction.

The NFA's enforcement action against GAIN Capital and its CEO was based on several compliance violations. These included improper adjustments to customer accounts, inadequate treatment of customers affected by the system malfunction, and submitting inaccurate and incomplete information to the NFA, Finance Magnates reported.