|NOTICE OF MEMBER AND ASSOCIATE RESPONSIBILITY ACTIONS:
On November 21, 2005, NFA issued a Member Responsibility Action (“MRA”) against FX Trading, LLC (“FXT”) and an Associate Responsibility Action (“ARA”) against Shaheryar Khan (“Khan”) whereby:
1. FXT is suspended from NFA membership and Khan is suspended from NFA Associate membership until further notice;
2. FXT and Khan are prohibited from soliciting or accepting any customer accounts or customer funds;
3. FXT and Khan are prohibited from accepting or placing trades for accounts, except for the liquidation of existing positions. In executing liquidation orders, FXT and Khan must act in the best interest of its customers;
4. FXT and Khan are prohibited from distributing, disbursing or transferring any funds, including without limitation distributions, disbursals transfers to existing or former customers, without the prior approval of NFA; and
5. FXT and Khan are required to provide copies of this MRA and ARA via overnight courier to all customers having accounts with FXT.
These actions are effective immediately and are deemed necessary to protect the commodity futures markets, customers and other NFA Members because FXT has failed to demonstrate that it meets the requirements of NFA Financial Requirements Section 11 or that it is in compliance with all other NFA Financial Requirements. In addition, FXT and Khan: failed to cooperate promptly and fully with NFA in an NFA investigation, inquiry, audit or examination; provided false and misleading information to NFA; and failed to prepare and maintain required financial records. Thus, FXT and Khan have failed to demonstrate that they are in compliance with NFA Requirements.
The MRA and ARA will remain in effect until such time as FXT and Khan demonstrate to the satisfaction of NFA that they are in complete compliance with all NFA Requirements, including but not limited to NFA Financial Requirements Section 11.
NFA Members receiving notice of this MRA and ARA by service or otherwise who carry accounts in the name of, or controlled by, FXT and Khan, or either of them, are prohibited from disbursing or transferring funds to FXT or Khan or any entity controlled by them for any reason without prior approval of NFA. To view this MRA and ARA, go to Case Documents. To obtain a copy, contact NFA's Information Center.