The NFA slaps Alpari US for $200,000

AsstModerator

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The NFA slaps Alpari US for $200,000

The NFA is getting serious about limits in cancelling trades.

For Immediate Release
July 26, 2012
For more information contact:
Karen Wuertz (312) 781-1335, kwuertz@nfa.futures.org
Larry Dyekman (312) 781-1372, ldyekman@nfa.futures.org

NFA issues $200,000 fine against New York forex firm Alpari US LLC

July 26, Chicago - National Futures Association (NFA) has ordered Alpari US LLC, a futures commission merchant and forex dealer Member located in New York City, to pay a $200,000 fine as a result of an NFA Complaint filed in June 2012 and a settlement offer submitted by Alpari and two of the firm's principals, Jermaine C. Harmon and Richard A. Lani.

The Decision, issued by NFA's Business Conduct Committee, found Alpari violated several NFA requirements, including improperly cancelling forex trades and removing profits from customer accounts, failing to timely report trade data and other required information to NFA, failing to observe high standards of commercial honor, failing to comply with NFA's Enhanced Supervisory Requirements and failing to keep accurate records. The Decision also found that Alpari - together with Harmon and Lani - failed to supervise.

In addition to the $200,000 fine, Alpari is required to refund within 30 days to customers losses they incurred as a result of the price adjustments that Alpari made to their accounts in connection with an October 2011 "market event." Alpari must also provide verification to NFA that these refunds were paid to and received by customers.

Alpari must also submit a written report to NFA within 180 days of the effective date of the Decision which documents the results of an independent review of Alpari's electronic trading platforms conducted by a qualified outside party and the steps Alpari has implemented to remedy deficiencies with the firm's internal controls.

Alpari, Harmon and Lani neither admitted nor denied the charges. The complete text of the Complaint and Decision are available on NFA's website.

I'd like to thank FPA reviewer Tangmase for bringing this to the attention of the FPA.

NFA Press Release on Alpari US action

FPA review page for Alpari-US.com
 

Pharaoh

Colonel
Messages
19,717
I see some good news indirectly stated.

"Alpari must also provide verification to NFA that these refunds were paid to and received by customers." would seem to indicate that the NFA learned to not trust brokers to follow instructions. Looks like they don't want to take a chance of a case like FXDD's clients not getting paid to happen again.
 

PistolDave

Corporal
Messages
105
I always thought Alpari was one of the better quality brokers.

I don't know a lot about violations by futures brokers, but I seem to remember reading that most, if not all, of them get fines like this from time to time. Apparently, it is just normal business by all of them. Also, the penalties are not severe enough if they still continue to violate as often as they do. They probably see the fines as just a price of doing business, like big pharmaceuticals see the inevitable lawsuits in the same way.
 

PeruAndArts

Recruit
Messages
2
Gosh! I always thought Alpari was one of the best quality brokers. So we can't trust any broker? please can you recommend a serious and reliable broker, thank you.
 

RP1

Corporal
Messages
101
200k is not really a punishment in my opinion.
It can easily be written off as a business expense and wont hurt them.
The fines for this sort of behaviour should be in the millions , that would make all brokers sit up and tow the line.
FXDD you reading this ?
 

WinFX

Private, 1st Class
Messages
38
Good news indeed. I hope other regulatory institutions like the FSA follow the same example. It must be clear that "seemingly" wrong price quotes are the brokers mistake and they have to take responsibility for it, not the trader.
 

lpc9898

Private
Messages
10
Thanks a lot to FPA for highlighting this matter to us in Asia....we normally don't get this type of first hand news. It could be just the tip of the iceberg of all those unscrupulous brokers surfacing their dishonesty including so call trusted brokers.........
 

Le Roux

Private
Messages
22
$200,000..... is that all? Always knew they were as dubious as the South African Government (the all new liberated South Africa)!!!:mad:
 

Chublet

Private
Messages
17
Shocking news to know...as I thought Alpari was one of the best brokers......you never know what they are doing behind you....
 
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