The NFA ordered Strategy Automation LLC to file with NFA a notice of exemption from the CFTC’s Part 4 requirements; and file required forms to withdraw from NFA membership and from CPO registration with the CFTC. In addition, Strategy Automation was ordered not to reapply for NFA membership or CPO registration with the CFTC for one year. If after expiration of the one-year period, Strategy Automation reapplies for NFA membership and/or CPO registration, it shall pay a $5,000 fine. However, if Strategy Automation waits for two years to reapply for NFA membership and/or CPO registration, it will be relieved of its obligation to pay the $5,000 fine. The action followed a Complaint charging Strategy Automation with failing to timely file with NFA, and distribute to participants, the 2008 annual report. Strategy Automation answered the action and submitted an Offer in which it neither admitted nor denied the allegation. The NFA accepted the Offer.
The Answer follows”
“Being that our CPO does not have any investors other than my partner and me, we believed we were exempt from filing the certified annual report for the pool so we were unprepared to supply our report. Once the NFA notified us, we immediately hired the Kaplan Company to prepare the report. We have had continued problems acquiring necessary trade confirmations in certain Tradestation Forex accounts and are still awaiting these confirmations. We will submit the certified annual report as soon as possible”.