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NOTICE OF MEMBER RESPONSIBILITY ACTION:
On July 24, 2007, NFA issued a Member Responsibility Action ("MRA") against Nations Investments LLC whereby:
1. Effective immediately, Nations is prohibited from soliciting or accepting any additional customer accounts or customer funds, except as security deposits for existing positions. The prohibition on solicitation includes, without limitation, ceasing solicitation through the firm's website.
2. Effective immediately, Nations is prohibited from accepting or placing trades for any customer accounts except for the liquidation of existing customer positions and Nations is prohibited from acting as a counterparty to any foreign currency ("Forex") transactions.
3. Nations must liquidate all customer and firm Forex positions by 5:00 p.m. (EDT) on Wednesday, July 25, 2007.
4. Nations is required to liquidate all Forex positions held in any account for any Nations' principal or employee by 5:00 p.m. (EDT) on Wednesday, July 25, 2007, and, further, is prohibited from initiating any additional positions in such accounts.
5. Nations is prohibited from distributing, disbursing or transferring any funds, including to existing customers, without the prior approval of NFA.
6. In taking any action under this MRA, Nations must act in the best interests of its customers.
This action is effective immediately and is deemed necessary to protect customers because Nations has failed to demonstrate that it meets the capital requirements of NFA Financial Requirements Sections 1 and 11. Additionally, it appears that Nations does not have sufficient assets to meet its obligations to its customers.
The MRA will remain in effect until such time as Nations has demonstrated to the satisfaction of NFA that it is in complete compliance with all NFA Requirements. |