From the November 01, 2010 issue of Futures Magazine • Subscribe!

CFTC eyes FCMs

In a week’s time, three well know futures commission merchants (FCMs) were sanctioned by the CFTC, though one, Alaron Trading Corp., is no longer in operation as an FCM having sold its customer accounts to PFGBEST a year ago.

The CFTC simultaneously filed and settled charges against Alaron, Rosenthal Collins Group LLC (RCG) and Triland USA Inc. in early October.

RCG was charged with failing to supervise diligently its employee’s handling of accounts held at RCG in the name of a Texas based commodity pool run by George D. Hudgins. According to the order, RCG is required to pay a $780,000 fine and is further ordered to pay $618,526 in disgorgement to cover the amount of related commissions it received. RCG does not comment on regulatory cases.

Triland was ordered to pay $725,000 for failure to follow CFTC regulations regarding secured funds on foreign futures and options traders.

Alaron was charged with supervisory failures, which led the FCM to become under segregated and its assets to fall below net capital requirement.

comments powered by Disqus
Check out Futures Magazine - Polls on LockerDome on LockerDome