CFTC creates separate account class for customer positions in cleared OTC derivatives

The CFTC approved final rules that aim to enhance certainty regarding protections under the Bankruptcy Code and CFTC regulation Part 190 with respect to OTC derivatives (and related collateral) that customers clear through a futures commission merchant on or subject to the rules of a derivatives clearing...

Revised financial requirements for FCMs and IBs

The CFTC’s revised financial requirements for FCMs and IBs and NFA’s amendments to NFA Financial Requirements Section 1 are effective as of March 31, 2010. The revised requirements impact FCM financial requirements as follows:Increase the minimum dollar capital requirement from $500,000 to...

CFTC ACTION: Tower Analysis Inc. et al.

The CFTC obtained more than $4.6 million in disgorgement and civil monetary penalties in a court order settling CFTC charges filed on March 11, 2009, against defendants John M. Donnelly, Tower Analysis Inc., Nasco Tang Corp. and Nadia Capital Corp., all of Charlottesville, Va., and relief...

CFTC ACTION: Money Market Alternative, LP

The CFTC charged Enrique F. Villalba, Jr. and his firm, Money Market Alternative, LP (MMA), an Ohio company, with operating a multi-million dollar commodity futures Ponzi scheme. The CFTC complaint charges that, beginning in at least 1996 and continuing through at least November 2009, Villalba and MMA...

NFA grants conditional registration despite omissions

Aaron Rischall filed an application to become registered as a floor broker and floor trader. On October 7, 2009, NFA’s President issued a Notice of Intent to Deny Registration (Notice of Intent) to Rischall. The Notice of Intent alleged that on October 29,2004, in the Dane County, Wisconsin Circuit...

CFTC ACTION: Lake Dow Capital, LLC

The CFTC obtained more than $4 million in restitution and civil monetary penalties in an order entered by the U.S. District Court for the Northern Division of Georgia against defendants Lake Dow Capital, LLC and Ty Edwards in CFTC v. Lake Dow, LLC, et al., a CFTC enforcement action filed in October...

NFA denies registration on account of willful omission

On December 26, 2008, Chris Cameron filed an application to become registered with the Commodity Futures Trading Commission as a Floor Trader. On September 16, 2009, the NFA issued a Notice of Intent to Deny Registration to Cameron. The Notice alleged that on June 15, 2005, Cameron pled nolo contendere to...

CFTC ACTION: Guardian Futures, Inc.

The CFTC obtained $260,000 in civil monetary penalties and equitable relief in separate federal judgment orders against Steven Leigh Shakespeare and his company, Guardian Futures, Inc., an Austin, Texas introducing broker, in a CFTC anti-fraud action. The orders of permanent injunction, entered by Judge...

NFA ACTION: Torc Investment and Research LLC

On December 9, 2009, this NFA issued a Complaint against Torc Investment and Research LLC, an independent introducing broker Member of NFA and a registered broker-dealer, located in New York City. The Complaint alleged that Torc failed to file its December 31, 2007, June 30, 2008 and June 30, 2009 unaudited...

NFA ACTION: GFS Forex & Futures Inc.

On December 16, 2009, the NFA issued a Complaint against GFS Forex & Futures Inc., its principal Yun Lun Ho, and Matthew Paul Censullo. The Complaint alleged that GFS failed to provide the NFA with a copy of a notice of bulk liquidation and transfer of customer accounts before it was posted on...