October 28, Chicago - National Futures Association (NFA) has ordered Gain Capital Group LLC (Gain), a forex dealer member located in Bedminster, New Jersey, to pay a $459,000 fine as a result of an NFA Complaint issued and a settlement offer submitted by Gain and its chief executive officer, Glenn H. Stevens.
NFA's Business Conduct Committee alleged that Gain engaged in abusive margin, liquidation and price slippage practices that benefited Gain to the detriment of its customers. The Committee also alleged that Gain failed to maintain records for certain unfilled orders, failed to adequately review the activities and promotional material of the firm's unregistered solicitors, and failed to supervise the firm's operations.
In addition to the fine amount, Gain must also provide appropriate refunds to its customers as a result of these detrimental margin, liquidation and asymmetrical slippage practices.
NFA is the premier independent provider of innovative and efficient regulatory programs that safeguard the integrity of the futures markets.
Gain Capital provided the following statement:
On October 27, 2010, GAIN Capital entered into a settlement with the National Futures Association to resolve the pending proceeding against the firm, which included three claims relating to execution practices in its Metatrader platform and its former weekend liquidation policy. The company entered into a settlement without admitting or denying NFA’s allegations and agreed to pay a fine of $459,000. As part of the settlement, the company also agreed to provide appropriate refunds to those customers who were adversely affected by the practices described in the NFA complaint. We estimate that, in total, the trades affected by both issues represented approximately .05% of all customer transactions during the period.
GAIN Capital is fully committed to compliance with all applicable laws and regulations affecting its business and will continue to review all operations of the company to ensure that its operations are world class, transparent and that the interest of its clients and partners are fully protected.