National Futures Association (NFA) has ordered IBFX to permanently withdraw from NFA membership and from acting as a principal of an NFA Member. IBFX is an NFA Member registered retail foreign exchange dealer and registered swap dealer located in Plantation, Florida.
The decision follows a November 2nd four-count complaint brought by the NFA against the broker that alleged that IBFX had failed to comply with CCO requirements as a provisionally registered SD and failed to implement an adequate risk management program, in violation of NFA Compliance Rule 2-49.
Other counts accused IBFX of failing to properly calculate and maintain required minimum adjusted net capital, failed to notify NFA of the firm’s capital deficiencies and failed to enter into written agreements with foreign institutions that held assets to cover the firm’s customer forex liabilities, in violation of NFA Financial Requirements Sections 1. In addition, IBFX failed to maintain complete and accurate books and records, in violation of NFA Compliance Rule 2-10. IBFX is the foreign exchange subsidiary of TradeStation, which is a subsidiary of Japanese Monex Group. Back in September 2014, IBFX retail clients were taken over by FXCM, an acquisition that involved approximately $63 million in client equity and 13,000 accounts. The IBFX MT4 Accounts were transferred to Forex Capital Markets LLC (“FXCM US”) or FXCM Australia Limited (“FXCM AU”). It sold off its remaining business to OANDA last month.
Several weeks ago, it announced its exit from retail foreign exchange in both the U.S. and Australia and agreed to pay a $1 million penalty, part of which was for prior charges related to past violations but IBFX failed to pay.
