Case Summary

COMPLAINT:

On October 17, 2011, NFA issued a Complaint charging FXCT with doing business with a non-Member that was required to be registered as an IB but was not so registered; failing to supervise Market Traders' promotional material; failing to conduct adequate due diligence to determine whether entities with which the firm conducted business were required to be registered with the CFTC and NFA Members; and failing to keep accurate financial records, maintain required minimum adjusted net capital, or observe high standards of commercial honor and just and equitable principles of trade. The Complaint also charged FXCT, Martinez and Farr with failing to supervise.

ANSWER:

On November 17, 2011, FXCT, Martinez and Farr filed an Answer to the Complaint in which they denied the material allegations contained therein.

DECISION:

On March 1, 2012, pursuant to a settlement offer submitted by Farr, she was ordered not to reapply for NFA associate membership or principal status with an NFA Member or apply for NFA membership for two years from the date of the Decision. During the two-year period, Farr may not act in any capacity requiring registration or act as a principal of an NFA Member. If, after expiration of the two-year period Farr applies for NFA membership or associate membership, or seeks to become a principal of an NFA Member, then, in any such such event, she was ordered to pay a $7,500 fine, due and payable at the time she makes any such application and no action will be taken with respect to any such application unless and until the fine has been paid in full. Following the expiration of the two-year period, Farr may not be employed in a compliance capacity by any NFA Member for an additional two years, unless she reports to and is supervised by another person in the Member's compliance department.

COMPLAINT:

On October 17, 2011, NFA issued a Complaint charging FXCT with doing business with a non-Member that was required to be registered as an IB but was not so registered; failing to supervise Market Traders' promotional material; failing to conduct adequate due diligence to determine whether entities with which the firm conducted business were required to be registered with the CFTC and NFA Members; and failing to keep accurate financial records, maintain required minimum adjusted net capital, or observe high standards of commercial honor and just and equitable principles of trade. The Complaint also charged FXCT, Martinez and Farr with failing to supervise.

ANSWER:

On November 17, 2011, FXCT, Martinez and Farr filed an Answer to the Complaint in which they denied the material allegations contained therein.

DECISION:

On March 1, 2012, pursuant to a settlement offer submitted by FXCT and Martinez, FXCT was ordered not to reapply for NFA membership or act as a principal of an NFA Member. Martinez was ordered not to reapply for NFA associate membership or apply for NFA membership for three years from the date of the Decision. During the three-year period, Martinez may not act in any capacity requiring registration or act as a principal of an NFA Member. If, after expiration of the three-year period Martinez reapplies for NFA associate membership or applies for NFA membership or principal status with an NFA Member, he was ordered to pay a $150,000 fine on or before the date on which he makes any such application and no action will be taken with respect to any such application unless and until the fine has been paid in full. If, after expiration of the three-year period, Martinez becomes an AP or principal of an NFA Member, then he and any NFA Member of which he becomes an AP or principal shall - for an additional two years - comply with the enhanced supervisory requirements set forth in NFA Compliance Rule 2-9(b) and its accompanying Interpretive Notice.

COMPLAINT:

On October 17, 2011, NFA issued a Complaint charging FXCT with doing business with a non-Member that was required to be registered as an IB but was not so registered; failing to supervise Market Traders' promotional material; failing to conduct adequate due diligence to determine whether entities with which the firm conducted business were required to be registered with the CFTC and NFA Members; and failing to keep accurate financial records, maintain required minimum adjusted net capital, or observe high standards of commercial honor and just and equitable principles of trade. The Complaint also charged FXCT, Martinez and Farr with failing to supervise.

ANSWER:

On November 17, 2011, FXCT, Martinez and Farr filed an Answer to the Complaint in which they denied the material allegations contained therein.

DECISION:

On March 1, 2012, pursuant to a settlement offer submitted by FXCT and Martinez, FXCT was ordered not to reapply for NFA membership or act as a principal of an NFA Member. Martinez was ordered not to reapply for NFA associate membership or apply for NFA membership for three years from the date of the Decision. During the three-year period, Martinez may not act in any capacity requiring registration or act as a principal of an NFA Member. If, after expiration of the three-year period Martinez reapplies for NFA associate membership or applies for NFA membership or principal status with an NFA Member, he was ordered to pay a $150,000 fine on or before the date on which he makes any such application and no action will be taken with respect to any such application unless and until the fine has been paid in full. If, after expiration of the three-year period, Martinez becomes an AP or principal of an NFA Member, then he and any NFA Member of which he becomes an AP or principal shall - for an additional two years - comply with the enhanced supervisory requirements set forth in NFA Compliance Rule 2-9(b) and its accompanying Interpretive Notice.