First off, I'm not going to give the name of the Firm (for obvious legal reasons), but I will say that I am holding the "Suspension" papers for the Firm.
2 pages of violations, and here are a couple of salient points.
XYZ Trading and Mr. xxxx and others....
"...violated Sections 15 and 17 of the Sec. Ex. Act of 1934.....(blah blah) (gets better)....violated exchange rules 604, 640, 703, 705, 707, 721, 722, 746, 748, 757, 760, (and on and on for another 10 or so).......failing to (a)keep current books and records and filing inaccurate financial reports with the Exchange from June 2003...(b)maintain required net capital at all times....(c)..provide timely notice of their net capital DEFIciencies....(blah blah)...(f) failed to maintain Special Reserve Bank Accounts for the exclusive benefit of its customers.....(g)...maintain a Brokers Blanket Bond Coverage fidelity bond.....(h) ...ensure that customer margin accounts.....adequate margin....(several more)...now a biggee (i)failure TO ENSURE THAT ALL OF ITS EMPLOYEES REGISTERED WITH THE EXCHANGE AS TRADERS HAD SUCCESSFULLY COMPLETED THE UNIFORM REGISTERED REPRESENTATIVE EXAMINATION - SERIES 7....it goes on for a few hundred more words
"Agreed to pay $70,000 and a TEN YEAR suspension from exchange membership.....or association in any capacity with any exchange member or member organizations for each (their management team).
I may be going out on a limb here, and I'm pretty sure that some ET naysayers will think that I'm "bashing" for bashings sake, or for some marketing purpose...but I hope that the majority of you all simply practice "Due Diligence" before tossing your career into the toilet with a non-reputable firm.
Now all this with a Firm who "is" an exchange member and regulated...imagine how bad the guys who aren't regulated might be.
So, just do you due diligence guys, trade wherever you want, but don't get caught up in something that can be avoided easily.
All the best,
Don
2 pages of violations, and here are a couple of salient points.
XYZ Trading and Mr. xxxx and others....
"...violated Sections 15 and 17 of the Sec. Ex. Act of 1934.....(blah blah) (gets better)....violated exchange rules 604, 640, 703, 705, 707, 721, 722, 746, 748, 757, 760, (and on and on for another 10 or so).......failing to (a)keep current books and records and filing inaccurate financial reports with the Exchange from June 2003...(b)maintain required net capital at all times....(c)..provide timely notice of their net capital DEFIciencies....(blah blah)...(f) failed to maintain Special Reserve Bank Accounts for the exclusive benefit of its customers.....(g)...maintain a Brokers Blanket Bond Coverage fidelity bond.....(h) ...ensure that customer margin accounts.....adequate margin....(several more)...now a biggee (i)failure TO ENSURE THAT ALL OF ITS EMPLOYEES REGISTERED WITH THE EXCHANGE AS TRADERS HAD SUCCESSFULLY COMPLETED THE UNIFORM REGISTERED REPRESENTATIVE EXAMINATION - SERIES 7....it goes on for a few hundred more words
"Agreed to pay $70,000 and a TEN YEAR suspension from exchange membership.....or association in any capacity with any exchange member or member organizations for each (their management team).
I may be going out on a limb here, and I'm pretty sure that some ET naysayers will think that I'm "bashing" for bashings sake, or for some marketing purpose...but I hope that the majority of you all simply practice "Due Diligence" before tossing your career into the toilet with a non-reputable firm.
Now all this with a Firm who "is" an exchange member and regulated...imagine how bad the guys who aren't regulated might be.
So, just do you due diligence guys, trade wherever you want, but don't get caught up in something that can be avoided easily.
All the best,
Don
