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The US’ National Futures Association (NFA) has permanently barred membership status to New York-based introducing broker CC Trading Company, aka Christopher Craddock Trading Company, the association said in a notice on Monday. The NFA has imposed a permanent bar to the broker from membership and from principal status.
NFA has also ordered CC Trading to never reapply for membership with it.
The move comes after in March 2015, the NFA issued a complaint against CC Trading and its manager and principal Chris Craddock in relation to their inability to meet certain NFA criteria, such as keep adjusted net capital (ANC) at the required minimum, maintain accurate financial records, and provide adequate supervision. A month later, the broker denied all allegations. Moreover, it denied cooperation at the time of examination and provide misleading information.
This is the second such complaint issued against CC Trading and the NFA decided to revoke the broker’s member status.
The NFA’s Hearing Panel adopted the decision on 22 January, 2016. CC Trading has been a member of the association since February 2008.
In September 2011, the NFA filed another complaint against CC Trading over similar infringements, including failure to comply with the equity withdrawal restriction and to notify the NFA of the its capital deficiencies.The broker had tried to mislead the NFA that it complied with the requirements for a minimum ANC of $45,000 by depositing funds to its own bank account and later, after showing their presence to the NFA, withdrawing them without informing the association. The broker was required to pay a fine of $15,000 in settlement.
The NFA is a self-regulatory organization overlooking at the US derivatives markets, including on-exchange traded futures, retail off-exchange forex and over-the-counter (OTC) derivatives (swaps). It has tens of thousands of firms and associates as members. It acts as an external dispute resolution (EDR) organization in case of disputes between its members and their clients in smaller cases with arbitration claims of up to $150,000.
Its members are required to comply with certain rules and regulations and to provide reports on a daily, monthly, and quarterly basis. It recently introduced additional reporting requirements for forex dealer members (FDMs).
In cases when the NFA finds a member in breach with its regulations, the assassination can choose one of several penalties – impose membership expulsion or suspension for a set period of time, bar or suspension from association with other NFA members for a specified period, issue a censure or reprimand, or impose a fine of up to $250,000 for each violation. In addition, the NFA can order to cease any other fitting penalty not inconsistent with these penalties.