Global Futures Exchange Settles with NFA for $65,000

The NFA published a Complaint settlement with Global Futures Exchange & Trading Company (GFETC). Operating under numerous past and current brands including Global Futures, Lions Futures and TradingIndex, GFETC is a registered US Introducing Broker and Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Firm with Kattayoun Hakimian its President. According to the NFA, as of February 2013, GFETC had 2,000 active futures accounts and 560 active forex customers.

Filed on June 2014, the NFA charged GFETC and Hakimian for failure to “maintain complete and accurate financial records, prepare accurate net capital computations, and comply with the equity withdrawal restriction” and to “adequately supervise the firm's employees, agents and its futures and forex operations."

The complaint was based on a 2013 exam of the broker by the NFA. According to the NFA, the review revealed that GFETC had deficiencies in their recordkeeping and Anti-Money Laundering (AML) Anti-Money Laundering (AML) Anti-money laundering (AML) is a term that describes laws, processes, and regulations that are intended to prevent illegally obtained funds from being disguised as income gained through legitimate means. The fundamental purpose of the AML laws is to help safeguard, detect, and report suspicious activity including the predicate offenses to money laundering and terrorist financing, such as securities fraud and market manipulation.Most exchanges have AML measures that include identity verification Anti-money laundering (AML) is a term that describes laws, processes, and regulations that are intended to prevent illegally obtained funds from being disguised as income gained through legitimate means. The fundamental purpose of the AML laws is to help safeguard, detect, and report suspicious activity including the predicate offenses to money laundering and terrorist financing, such as securities fraud and market manipulation.Most exchanges have AML measures that include identity verification Read this Term) program. The deficiencies were similar to problems the NFA had discovered in a 2009 exam. As an example, the NFA noted that the broker didn’t calculate its net capital properly. The inaccuracies led to GFETC filing monthly and annual statements with error which they didn’t correct after being notified of problem in the middle of 2013.

Settling with the NFA, GFETC and Hakimian offered to pay a fine of $65,000 as well as not “admitting or denying allegations of the complaint." Agreeing to the offer, the NFA announced that it would accept the $65,000 fine as settlement to the case.